\n<\/p>\n
New York is suing Kalshi over claims the prediction market is running \u201can illegal gambling operation.\u201d In the lawsuit, New York Attorney General Letitia James accuses Kalshi of violating state laws by accepting wagers without a license from the state\u2019s gaming commission, as reported earlier by CNBC.<\/p>\n<\/div>\n
An investigation from the Office of the Attorney General (OAG) found Kalshi exposes New York residents \u201cto serious personal and financial risk,\u201d including people under the legal gambling age of 21, the lawsuit alleges. The state asks the court to block Kalshi \u2014 which is headquartered in New York \u2014 from operating in the state and to pay restitution to customers who placed bets on the platform.<\/p>\n<\/div>\n
New York joins Nevada, New Mexico, Arizona, Washington, and others in suing Kalshi. Though some states, such as Wisconsin, Illinois, and Rhode Island, have attempted to introduce laws regulating Kalshi and other prediction markets like Polymarket, they have faced pushback from the federal government. The Commodity Futures Trading Commission (CFTC) says it has \u201cexclusive jurisdiction\u201d over prediction markets, but many states argue this authority doesn\u2019t apply to sports wagering.<\/p>\n<\/div>\n
\u201cIt\u2019s sad to see this type of political theater from the leadership in our own state,\u201d Elisabeth Diana, Kalshi\u2019s head of communications, said in an emailed statement to The Verge<\/em>. \u201cThis would also hurt New Yorkers, who would be driven offshore.\u201d<\/p>\n<\/div>\n Beyond state gambling laws, Kalshi has also sparked concerns about insider trading. Earlier this month, ABC News reported that President Donald Trump\u2019s teleprompter operator made $100,000 placing bets on Kalshi related to Trump\u2019s speeches.<\/p>\n<\/div>\n