New York alleges Kalshi running illegal gambling operation

New York sued Kalshi on Friday, alleging the prediction market operates an illegal, unlicensed gambling business. Attorney General Letitia James claims Kalshi violated state laws by accepting wagers without a license from the state gaming commission and skirting related taxes. The lawsuit asserts that the platform functions as a gambling operation because outcomes depend more on chance than skill, operating in flagrant disregard of Empire State laws regarding gaming licenses and the required tax obligations for such activities.