{"id":310835,"date":"2026-07-31T16:15:14","date_gmt":"2026-07-31T16:15:14","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/310835\/"},"modified":"2026-07-31T16:15:14","modified_gmt":"2026-07-31T16:15:14","slug":"new-york-state-sues-prediction-market-kalshi-for-illegal-gambling","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/310835\/","title":{"rendered":"New York state sues prediction market Kalshi for \u2018illegal gambling\u2019"},"content":{"rendered":"

New York state has sued Kalshi, claiming the prediction market company that has exploded in popularity in recent months is running an \u201cillegal gambling operation,\u201d according to Davis Giangiulio of CNBC.com. The suit claims Kalshi \u201caccepts wagers as a gambling business in disregard for the state\u2019s constitution and laws by not being registered with the New York State Gaming Commission.\u201d The state is seeking a \u201ctotal restitution to users who have placed trades on the platform, a $100,000 penalty for each attempt to offer sports wagering, and another penalty three times the amount the company has gained while allegedly operating in violation of New York law.\u201d Forty-four state attorneys General on Monday sent a letter to the CFTC stating that the commission \u201chas no right to regulate sports-related event contracts, as part of a public comment period for the agency\u2019s first draft of regulations on prediction markets<\/a>.\u201d The state cited Kalshi\u2019s \u201csports offering as the reason for its lawsuit,\u201d but it also claims that the company\u2019s \u201celections, culture and some other event contract offerings also put it in contradiction with the state\u2019s laws\u201d (CNBC.com, 7\/31<\/a>).<\/p>\n

ANOTHER BLOW: BLOOMBERG NEWS\u2019 Erik Larson notes the lawsuit is the \u201clatest legal clash for Kalshi\u201d as a New York judge earlier this month ruled that the company \u201ccan\u2019t stop state gaming officials from overseeing its sports prediction markets.\u201d Meanwhile, a federal judge \u201ctemporarily halted enforcement of Minnesota\u2019s first-in-the-nation law barring prediction markets, finding that some of the contracts could be considered financial instruments under the exclusive jurisdiction of a federal agency\u201d (BLOOMBERG NEWS, 7\/31<\/a>).<\/p>\n","protected":false},"excerpt":{"rendered":"New York state has sued Kalshi, claiming the prediction market company that has exploded in popularity in recent…\n","protected":false},"author":2,"featured_media":310836,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[10429,9,11,10,49,51,50],"class_list":["post-310835","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-york","tag-gambling","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"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/310835","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=310835"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/310835\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/310836"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=310835"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=310835"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=310835"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}