New York targets Kalshi in suit over alleged illegal gambling operation

New York Attorney General Letitia James has sued Kalshi, alleging the New York–based prediction market operates illegally by accepting wagers without a license from the state gaming commission. An OAG investigation says Kalshi could expose New Yorkers to personal and financial risks, including bettors under 21, and seeks to block Kalshi’s activities in the state and restitution for customers. New York joins several other states in challenging Kalshi, while the federal CFTC maintains it has exclusive jurisdiction over prediction markets; Kalshi contends the action is politically motivated and could push betting offshore. The case adds to ongoing concerns about insider trading in prediction markets.