BINGHAMTON, N.Y. (WBNG) — New York state has filed a lawsuit against prediction platform Kalshi, alleging the company ran an illegal gambling operation by targeting users between the ages of 18 and 20 — an age group too young for legal mobile sports betting in the state.
Governor Kathy Hochul released a statement saying in part: “This choice has consequences, and working closely with Attorney General James, New York is taking action to stop this illegal behavior and bring Kalshi into compliance, because no company is above the law.”
Katie Mibaum, team leader at the Finger Lakes Problem Gambling Resource Center, said the developing brain is particularly vulnerable to gambling stimulation.
“The human brain continues to develop up until the age of 25,” Mibaum said. “If you’re participating in something and your brain is getting stimulated… your brain is going to then prune those pathways to want to continue to participate in that activity and feed it more.”
Mibaum said behavioral warning signs can include disengagement from school or work.
“If you’re skipping class… because you’re starting to be disengaged in the normal activities in your life… it’s certainly a situation… that habit might be becoming a larger issue for you,” she said.
The state is demanding Kalshi forfeit all alleged gains and pay restitution to recover funds for consumers.
Mibaum encouraged teens and families to seek local help.
“At times, a gambling addiction can feel so overwhelming and all encompassing, and you’re really not alone in this process,” she said. “We have a whole slew of team members here that have helped people before and we will continue to help people as they call in and ask for it.”
Anyone who suspects a teenager is struggling with underage gambling can contact the state’s HOPEline at 1-877-8-HOPENY.
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