New York officials are celebrating a court win that could have major implications for a fast-growing online platform that lets users wager on real-world events.
BUFFALO, N.Y. — New York State leaders are celebrating a court victory against the company Kalshi.
The platform for so-called prediction markets lost its attempt to prevent it from being subjected to the state’s gambling laws. It allows users to bet on real-world events, such as who wins reality TV shows, or the color tie a politician may wear on a given day.
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It also allows users to bet on the outcomes of sporting events.
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Kalshi argued to the court that prediction markets are different from betting platforms, but the court sided with the state, which will be able to treat the platform as online gambling moving forward.
Gov. Kathy Hochul and New York Attorney General Letitia James released a joint statement in response to the court’s decision, saying in full:
“New York’s gambling laws are designed to protect consumers. Kalshi tried to ignore them. Yesterday, they lost in court. We will continue to hold all gambling platforms accountable to the law — and that includes prediction markets.”
The Attorney General’s Office on Wednesday also said it has secured a $45 million settlement from the company behind the popular payment app Cash App. This comes after a lawsuit from New York and 45 other states claiming that the company misled users, failed to protect them from scams, and didn’t help fraud victims.
Along with the money, the company will be required to improve its customer support services and change marketing practices that may increase fraud on the platform.