New York State has filed a lawsuit against Kalshi, alleging that the prediction market is a “gambling platform.”\u00a0 <\/p>\n
The lawsuit accuses Kalshi of offering sports and event betting in the state without a gaming license. <\/p>\n
The state government is asking a judge to bar Kalshi from operating an unlicensed gambling business in New York and seeks an accounting of customer bets, losses, and company gains. <\/p>\n
More From Cryptoprowl: <\/p>\n
New York is also seeking restitution, damages, and civil penalties against Kalshi as part of the legal action. <\/p>\n
Lawyers acting on behalf of the government have asked the judge to award New York a penalty equal to three times Kalshi’s gains from its activities in the state, plus $100,000 U.S. for each unauthorized sports wager.\u00a0 <\/p>\n
The lawsuit has been filed on behalf of New York Governor Kathy Hochul and Attorney General Letitia James. <\/p>\n
Kalshi, which was valued at $40 billion U.S. in a June funding round, is facing growing legal challenges to its business that lets people bet on real-world events such as sports and elections.\u00a0 <\/p>\n
In Minnesota, Kalshi and rival Polymarket scored a win when a U.S. District Court recently ruled that a state law banning prediction markets likely runs afoul of securities laws.\u00a0 <\/p>\n
In that case, the Minnesota judge granted a preliminary injunction against the law to enable both Kalshi and Polymarket to continue operating in the state.\u00a0 <\/p>\n
The Commodity Futures Trading Commission (CFTC) has claimed regulatory jurisdiction over prediction markets and said they should not be regulated by states like other gaming companies <\/p>\n
In its lawsuit, New York claims that Kalshi takes wagers on professional and college sports, elections and culture.\u00a0 <\/p>\n
The lawsuit alleges Kalshi allows users aged 18 to 20 to wager and lists markets involving New York college teams, both prohibited for licensed sportsbooks in the state. <\/p>\n
The recently completed World Cup soccer tournament gave a boost to Kalshi and Polymarket’s platforms. Kalshi claims to have added three million new users during the World Cup. <\/p>\n
Kalshi and Polymarket are each privately held and their stocks do not trade on public exchanges. \u00a0 <\/p>\n","protected":false},"excerpt":{"rendered":"New York State has filed a lawsuit against Kalshi, alleging that the prediction market is a “gambling platform.”\u00a0…\n","protected":false},"author":2,"featured_media":310721,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[13034,9,11,10,49,51,50,53673,5066],"class_list":["post-310720","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-york","tag-kalshi","tag-new-york","tag-new-york-headlines","tag-new-york-news","tag-new-york-state","tag-new-york-state-headlines","tag-new-york-state-news","tag-prediction-market","tag-state-government"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/310720","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=310720"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/310720\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/310721"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=310720"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=310720"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=310720"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}