AI Generated Image
New York sues Kalshi, claims it is 'illegal gambling operation'
CNBC • • general
Key Points:
- New York State sued prediction market platform Kalshi, accusing it of operating an illegal gambling business by accepting wagers without registration with the New York State Gaming Commission.
- The lawsuit seeks a permanent injunction against Kalshi, restitution for users, and penalties including $100,000 per sports wagering attempt and triple the company's alleged gains from violating state law.
- Kalshi, headquartered in New York City, expressed disappointment and argued that as a federally licensed exchange, it should not be shut down by the state.
- The Commodity Futures Trading Commission (CFTC), which regulates prediction markets federally, filed for a temporary restraining order against New York's enforcement actions amid ongoing legal battles between states and the federal government over regulation of sports-related event contracts.
- New York's lawsuit also challenges Kalshi's contracts related to elections and culture, asserting these offerings violate state laws beyond just sports betting regulations.
