New York sues Kalshi alleging illegal prediction markets defying state gambling laws

New York is taking legal action against Kalshi, with Governor Kathy Hochul and Attorney General Letitia James filing a lawsuit. The state alleges that Kalshi has been offering illegal gambling products to New Yorkers while defying state gambling laws. According to the lawsuit, the company operated these prediction markets without obtaining the necessary state license. This legal move signals an escalation in the conflict regarding the legality of prediction market operations within the state of New York.