{"id":23548,"date":"2026-07-31T21:23:26","date_gmt":"2026-07-31T16:23:26","guid":{"rendered":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/?p=23548"},"modified":"2026-07-31T21:23:26","modified_gmt":"2026-07-31T16:23:26","slug":"new-york-sues-kalshi-alleges-prediction-market-is-illegal-gambling","status":"publish","type":"post","link":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/?p=23548","title":{"rendered":"New York sues Kalshi, alleges prediction market is illegal gambling"},"content":{"rendered":"<p><script>\r\n  atOptions = {\r\n    'key' : '644b717812d811d6a1c1fc5b6ccd6fa6',\r\n    'format' : 'iframe',\r\n    'height' : 90,\r\n    'width' : 728,\r\n    'params' : {}\r\n  };\r\n<\/script>\r\n<script src=\"https:\/\/www.highperformanceformat.com\/644b717812d811d6a1c1fc5b6ccd6fa6\/invoke.js\"><\/script>\r\n<br \/>\n<\/p>\n<div data-testid=\"prism-article-body\">\n<p class=\"EkqkG IGXmU nlgHS yuUao MvWXB TjIXL aGjvy ebVHC \">New York sued Kalshi on Friday, alleging its prediction market is nothing more than illegal, unlicensed gambling, in large part because outcomes depend more on chance than skill.<\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">The lawsuit does not seek to close down Kalshi, but, if successful, it could dent its ability to operate.<\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">Kalshi insists its event contracts are federally regulated derivatives outside the scope of state gaming laws but New York Attorney General Letitia James\u2019 lawsuit said Kalshi is merely seeking \u201cto avoid the legal and financial consequences of New York\u2019s close regulation of gambling by offering what is quintessentially wagering.\u201d<\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">&#8220;It&#8217;s sad to see this type of political theater from the leadership in our own state. States can\u2019t just shut down a federally licensed exchange,&#8221; Elisabeth Diana, Kalshi&#8217;s Head of Communications told ABC News. &#8220;This would also hurt New Yorkers, who would be driven offshore. We love New York, we love New Yorkers, and New Yorkers love our product.&#8221;<\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">The lawsuit alleged Kalshi violates state laws prohibiting wagering on games involving New York college teams and all sports betting for those under 21.<\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">The Commodity Futures Trading Commission, which has said prediction markets are its exclusive purview, filed for a temporary restraining order to halt the state\u2019s lawsuit.<\/p>\n<div class=\"oLzSq QrHMO fnRUo pvsTF EhJPu vPlOC zNYgW OsTsW RMeqy daRVX ISNQ sKyCY eRftA acPPc MENS nFwaT MCnQE mEeeY SmBjI xegrY rPLsU iulOd NIuqO zzscu lzDCc aHUBM IEgzD OjMNy eQqcx SVqKB GQmdz jaoD VWDdR ONJdw vrZxD OnRTz gbbfF roDbV GPGwb oMlSS gfNzt oJhud eXZcf zhVlX \">\n<div>\n<div class=\"InlineImage GpQCA lZur asrEW \" data-testid=\"prism-inline-image\">\n<figure class=\"kzIjN GNmeK pYrtp dSqFO \" data-testid=\"prism-figure\">\n<div class=\"GpQCA lZur gIjeL \" data-testid=\"prism-ratio-frame\">\n<div class=\"FvQLF iLTd NqeUA UzzHi iWsMV \"><picture data-testid=\"prism-picture\"><source media=\"(max-width: 414px)\" srcset=\"https:\/\/i.abcnewsfe.com\/a\/12785b78-0e3d-4551-9529-8fac0359f7b6\/kalshi-sued_1785491022488_hpMain.jpg?w=375, https:\/\/i.abcnewsfe.com\/a\/12785b78-0e3d-4551-9529-8fac0359f7b6\/kalshi-sued_1785491022488_hpMain.jpg?w=750 2x\"\/><source media=\"(min-width: 415px)\" srcset=\"https:\/\/i.abcnewsfe.com\/a\/12785b78-0e3d-4551-9529-8fac0359f7b6\/kalshi-sued_1785491022488_hpMain.jpg?w=750, https:\/\/i.abcnewsfe.com\/a\/12785b78-0e3d-4551-9529-8fac0359f7b6\/kalshi-sued_1785491022488_hpMain.jpg?w=1500 2x\"\/><img decoding=\"async\" alt=\"\" class=\"hsDdd NDJZt sJeUN IJwXl vBqtr KrDt itslR SjwtZ hakZw HlUVI \" data-testid=\"prism-image\" draggable=\"false\" loading=\"lazy\" src=\"https:\/\/i.abcnewsfe.com\/a\/12785b78-0e3d-4551-9529-8fac0359f7b6\/kalshi-sued_1785491022488_hpMain.jpg\"\/><\/picture><\/div>\n<\/div><figcaption>\n<div class=\"nMMea bNYiy Mjgpa dGwha DDmxa jgKNG RGHCC aBIU PriDW aiQHS lZur \" data-testid=\"prism-caption\">\n<p><span class=\"hsDdd OOSI GpQCA lZur VlFaz \" data-testid=\"prism-truncate\"><span><span class=\"gtOSm FbbUW tUtYa vOCwz EQwFq yCufu eEak Qmvg nyTIa SRXVc vzLa jgBfc WXDas CiUCW kqbG zrdEG txGfn ygKVe BbezD UOtxr CVfpq xijV soGRS XgdC sEIlf daWqJ \">Kalshi logo appears in this illustration taken April 22, 2026.<\/span><\/span><\/span><\/p>\n<p><span class=\"gtOSm FbbUW tUtYa vOCwz EQwFq yCufu eEak Qmvg nyTIa SRXVc vzLa jgBfc WXDas CiUCW kqbG zrdEG txGfn ygKVe BbezD UOtxr CVfpq xijV soGRS XgdC sEIlf daWqJ YNujN JGtjI aZFDu rkKLh \">Dado Ruvic\/Reuters<\/span><\/p>\n<\/div>\n<\/figcaption><\/figure>\n<\/div>\n<\/div>\n<\/div>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">\u201cNew York\u2019s gambling laws protect children from underage betting and help combat gambling addiction,\u201d James said in a statement. \u201cNo matter what they call themselves, prediction makers like Kalshi are gambling platforms, plain and simple.\u201d<\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC TjIXL aGjvy \">The lawsuit sought a court order demanding Kalshi submit to state regulators and taxes, to forfeit illegal profits and pay restitution to users nationwide, a possible penalty that could cost Kalshi an estimated $36 billion, according to a statement of facts accompanying the lawsuit.<\/p>\n<p class=\"EkqkG IGXmU nlgHS yuUao lqtkC eTIW sUzSN \">\u201cKalshi has chosen to ignore New York\u2019s gambling laws, which exist to protect consumers, prevent problematic gambling, deliver funding for critical public services and ensure that every company plays by the same rules,\u201d Governor Kathy Hochul said.<\/p>\n<\/div>\n<script async=\"async\" data-cfasync=\"false\" src=\"https:\/\/pl30214220.effectivecpmnetwork.com\/9ab3d4df8a7e1a6171e16ddbf732cc19\/invoke.js\"><\/script>\r\n<div id=\"container-9ab3d4df8a7e1a6171e16ddbf732cc19\"><\/div>\r\n\n","protected":false},"excerpt":{"rendered":"<p>New York sued Kalshi on Friday, alleging its prediction market is nothing more than illegal, unlicensed gambling, in large part because outcomes depend more on chance than skill. The lawsuit does not seek to close down Kalshi, but, if successful, it could dent its ability to operate. Kalshi insists its event contracts are federally regulated&#8230;<\/p>\n","protected":false},"author":1,"featured_media":23549,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/i.abcnewsfe.com\/a\/12785b78-0e3d-4551-9529-8fac0359f7b6\/kalshi-sued_1785491022488_hpMain_16x9.jpg?w=1600","fifu_image_alt":"","footnotes":""},"categories":[22],"tags":[],"class_list":["post-23548","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-abc-news"],"brizy_media":[],"_links":{"self":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/posts\/23548","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23548"}],"version-history":[{"count":0,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/posts\/23548\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=\/wp\/v2\/media\/23549"}],"wp:attachment":[{"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23548"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23548"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/usnews-14267fa.ingress-comporellon.ewp.live\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23548"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}