New York sues prediction market platform Kalshi alleging 'illegal gambling operation'

New York officials sued prediction market platform Kalshi, alleging it operates as an illegal, unlicensed gambling platform. Kalshi claims it is federally licensed and that states have no authority to regulate it, while New York argues it violates state gambling laws by allowing underage betting and avoiding taxes. The state seeks to halt Kalshi's operations and confiscate its profits.