{"id":310628,"date":"2026-07-31T12:15:48","date_gmt":"2026-07-31T12:15:48","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/310628\/"},"modified":"2026-07-31T12:15:48","modified_gmt":"2026-07-31T12:15:48","slug":"new-york-sues-kalshi-alleging-illegal-gambling-operation","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/310628\/","title":{"rendered":"New York sues Kalshi, alleging illegal gambling operation"},"content":{"rendered":"<p>Gov. Kathy Hochul and New York Attorney General Letitia James sued the prediction market company Kalshi on Friday, claiming the prediction market platform does not abide by \u200cstate laws on illegal gambling.<\/p>\n<p>The lawsuit claims Kalshi allows users to wager money on the outcomes of events including sports, elections and cultural events without obtaining approval from the New York State Gaming Commission.<\/p>\n<p>Kalshi launched in 2021 as a platform where users could place money on the outcomes of future events. In 2025, the company expanded into sports \u201ctrading,\u201d saying it offered legal sports betting markets available nationwide.<\/p>\n<p>James\u2019 office said an investigation found Kalshi\u2019s platform meets the legal definition of gambling because users are betting on uncertain outcomes outside their control or events that depend on chance.<\/p>\n<p>\u201cKalshi has chosen to ignore New York\u2019s gaming laws, which exist to protect consumers, prevent problematic gambling, deliver funding for critical public services, and ensure that every company plays by the same rules,\u201d Hochul said in a statement. \u201cThis choice has consequences.\u201d<\/p>\n<p>James said prediction markets like Kalshi are gambling platforms that put New Yorkers at risk.<\/p>\n<p>\u201cNo matter what they call themselves, prediction markets like Kalshi are gambling platforms, plain and simple,\u201d James said. \u201cBy ignoring our laws, Kalshi is running an illegal operation and harming New Yorkers in the process.\u201d<\/p>\n<p>The suit also alleges the platform \u200bpreys on people under age 21 \u2014 despite New York law requiring users to be at least 21 to take part in mobile sports betting \u2014 and endangers people&#8217;s financial, emotional and physical health.<\/p>\n<p>The attorney general filed similar petitions in April against <a href=\"https:\/\/ny1.com\/nyc\/all-boroughs\/ap-top-news\/2026\/04\/21\/new-york-sues-coinbase-and-gemini-seeking-to-halt-unlicensed-prediction-market-businesses\" target=\"_blank\" rel=\"nofollow noopener\">Coinbase Financial Markets and Gemini Titan<\/a>.<\/p>\n<p>Kalshi pushed back against the lawsuit, calling it \u201cpolitical theater.\u201d<\/p>\n<p>\u201cStates can&#8217;t just shut down a federally licensed exchange,\u201d the company said in a statement. \u201cThis would also hurt New Yorkers, who would be driven offshore. We love New York, we love New Yorkers, and New Yorkers love our product.\u201d<\/p>\n<p>Kalshi&#8217;s previously requested an injunction against the state to avoid being subjected to New York&#8217;s gambling laws, which U.S. District Judge Analisa Torres&#8217; <a href=\"https:\/\/ny1.com\/nyc\/all-boroughs\/politics\/2026\/07\/09\/federal-judge-denies-kalshi-s-request-to-override-n-y--s-gambling-laws\" target=\"_blank\" rel=\"nofollow noopener\">refused on July 8<\/a>.<\/p>\n<p>The lawsuit asks a court to block Kalshi from operating in New York as an unlicensed gambling business.<\/p>\n<p>The state is also seeking the forfeiture of alleged illegal profits, restitution for affected users and financial penalties.<\/p>\n","protected":false},"excerpt":{"rendered":"Gov. Kathy Hochul and New York Attorney General Letitia James sued the prediction market company Kalshi on Friday,&hellip;\n","protected":false},"author":2,"featured_media":248461,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[109,25,4275,9,24,11,10,49,12,112,87,73913,27],"class_list":["post-310628","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-york","tag-app-local-state-politics","tag-app-top-stories","tag-local-politics","tag-new-york","tag-new-york-city","tag-new-york-headlines","tag-new-york-news","tag-new-york-state","tag-news","tag-ny-state-of-politics","tag-politics","tag-sarah-ng","tag-top-stories"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/310628","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=310628"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/310628\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/248461"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=310628"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=310628"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=310628"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}