New York is now part of a bipartisan coalition defending states’ gambling laws against the prediction market platform Kalshi.
Prediction market platforms allow users to bet on a wide range of events including politics, elections, sports, culture, economics even the weather.
“Right now, it’s seen as the more contemporary trend in the gambling world because it’s allowing people to bet on things that have not really been allowed in the past,” said Robin Singh, of the Queens Problem Gambling Resource Center.
Experts say they’re concerned that Kalshi and platforms like it are set up to look more like a financial market or news website instead of a betting platform, which may lead people to engage more with them.
“You’re not actually submitting a bet,” said Singh. “All of these questions and things are going to happen are called markets on the platform. We find that it creates a little bit of a sneaky way of getting around calling it a bet.”
Currently in the New York state Legislature there’s a proposal that would authorize the attorney general to formally set rules and regulations on prediction market platforms.
State Sen. Joe Addaboo is sponsoring it.
“Let’s say right now, they’re in illegal territory because we have regulated for instance mobile sports betting,” said Addabbo. “So, let’s regulate prediction markets.”
Some of the regulations Addabbo would like to see is a betting cap set for accounts and outreach for a user who may be in danger of forming an addiction.
In addition to Attorney General Letitia James joining the bipartisan coalition against Kalshi, Gov. Kathy Hochul issued a nation-leading executive order banning state employees from participating in inside trading on prediction markets.
“You know we can’t sit on the sidelines as a Legislature and the attorney general,” said Addabbo. “We can’t sit on the sidelines with prediction markets. They’re growing and expanding so big and there’s no safeguards for our residents.”
The federal government is suing New York for enforcing the state’s gambling laws in actions against prediction markets.
In a joint statement, Hochul and Attorney General James said in part:
“Once again, this administration is prioritizing big corporations over consumers and New Yorkers’ best interests. New York’s gambling laws are designed to protect consumers, whether they are placing bets in a prediction market or a casino. When gambling platforms, including prediction markets, violate our laws, we will not hesitate to hold them accountable. We look forward to continuing to defend our laws in court.”