New York Alleges Kalshi Running Illegal Gambling Operation — WSJ

By Joseph De AvilaNew York has filed a lawsuit against prediction-market company Kalshi, alleging it runs an illegal gambling operation.New York Attorney General Letitia James's office said Kalshi's prediction market meets the legal definition of gambling because users are betting on events outside of their control in a game of chance, according to the lawsuit filed Friday in state court.The Attorney General's office is asking the court to ban Kalshi from operating in New York without a gambling license and to force it to forfeit all of its gains."Kalshi has chosen to ignore New York's gaming 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," Gov. Kathy Hochul said."States can't just shut down a federally licensed exchange," Kalshi spokeswoman Elisabeth Diana said, calling the lawsuit "political theater."Kalshi has led the surging popularity of prediction markets in the U.S., allowing users to speculate on things ranging from sports and major events to flight cancellations.Updates to follow as news develops.Write to Joseph De Avila at [email protected]