New York Sues Kalshi

New York Attorney General Letitia James and Gov. Kathy Hochul sued Kalshi, alleging the federally regulated prediction-market platform is operating an illegal, unlicensed gambling business in the state. The complaint says Kalshi accepts wagers, including sports-related contracts, without approval from the New York State Gaming Commission and without paying required state gambling taxes. New York asks the court to block Kalshi’s operations in the state, order consumer restitution and profit forfeiture, and impose fines that could total billions of dollars. The case is part of a broader fight over whether prediction markets are governed by state gambling laws or federal commodities regulation.