New York’s attorney general, Letitia James, has sued Kalshi, a prediction markets platform, for allegedly violating state laws against illegal gambling. The lawsuit claims that Kalshi failed to obtain a New York State Gaming Commission license to operate its platform, where users can trade based on the predicted outcomes of events such as sports and elections.
Prediction Markets and Gambling Laws
James argues that prediction markets like Kalshi are essentially gambling platforms, which can encourage problem gambling, including among people under the age of 21. The lawsuit seeks the forfeiture of illegal gains, civil fines, and restitution to customers. This is not the first time Kalshi has faced regulatory challenges, as at least four states have won court orders restricting its activities.
The growth of prediction markets has sparked a flurry of lawsuits and countersuits over the authority of individual U.S. states to regulate the industry. The U.S. Commodity Futures Trading Commission has claimed exclusive oversight, challenging regulatory activity in at least nine states. A federal judge recently rejected Kalshi’s request to avoid being subjected to New York’s gambling laws while it appeals a judge’s refusal to grant a preliminary injunction against the state.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
