Kalshi faces multiple state lawsuits over illegal gambling claims FAST-MOVING

Kalshi state lawsuits illegal gambling prediction markets CFTC ruling

New York Attorney General Letitia James filed a lawsuit against prediction‑market platform Kalshi, accusing it of operating without a New York State Gaming Commission licence and of allowing bets from users aged 18‑20, below the state’s 21‑year minimum. The suit seeks injunctive relief, restitution and damages that could total at least $36 billion.

Arizona Attorney General Kris Mayes announced criminal charges against Kalshi, alleging the company runs an illegal gambling operation in the state and detailing 20 counts related to unlicensed betting on elections and other events.

In Wisconsin, U.S. District Judge William Griesbach rejected the Commodity Futures Trading Commission’s request for a preliminary injunction, permitting the state to apply its gambling statutes to Kalshi and other prediction‑market platforms.

The New Jersey Casino Association has asked the CFTC to curb sports‑related prediction contracts from firms such as Kalshi and Polymarket, arguing that such contracts conflict with state gambling laws where sports betting remains illegal. Other states, including Massachusetts and Michigan, have pursued similar actions against prediction‑market operators.

Entities: Commodity Futures Trading Commission · Josh Kaul · Kalshi · Kris Mayes · Letitia James · William Griesbach · Wisconsin

Claims

What the coverage asserts, and how well corroborated each claim is across sources.

[● 2 SOURCES] U.S. District Judge William Griesbach denied the CFTC’s request, allowing Wisconsin to enforce its gambling laws on Kalshi and other platforms. (Wisconsin case article)
[● 10 SOURCES] New York alleges Kalshi allows users aged 18‑20 to bet, below the state’s minimum age of 21. (NY lawsuit articles)
[● 2 SOURCES] Wisconsin sued Kalshi, Polymarket, Crypto.com, Robinhood and Coinbase alleging their sports contracts are unlicensed gambling. (Wisconsin lawsuit)
[○ 1 SOURCE] Arizona Attorney General Kris Mayes filed criminal charges against Kalshi, alleging illegal gambling without a state licence. (Arizona article)
[● 4 SOURCES] The CFTC claimed exclusive jurisdiction over prediction‑market platforms and sued New York to block state enforcement. (CFTC claim articles)
[● 11 SOURCES] New York Attorney General Letitia James sued Kalshi for operating without a New York State Gaming Commission licence. (NY lawsuit articles)
[● 10 SOURCES] Four other states, including Massachusetts and Michigan, have filed similar actions against prediction‑market operators. (NY lawsuit articles)
[● 2 SOURCES] The New Jersey Casino Association asked the CFTC to restrict sports‑related prediction contracts that conflict with state gambling laws. (Industry request)
[○ 1 SOURCE] Arizona Attorney General Kris Mayes filed criminal charges – twenty counts – against Kalshi for illegal gambling on elections and other events. (Arizona criminal case)
[● 2 SOURCES] New York's lawsuit seeks at least $36 billion in damages and injunctive relief against Kalshi. (Damages claim)
[○ 1 SOURCE] The New Jersey Casino Association asked the CFTC to restrict sports‑related prediction contracts from Kalshi and Polymarket. (New Jersey article)
[● 2 SOURCES] New York lawsuit seeks at least $36 billion in damages from Kalshi. (NY lawsuit articles)