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New York Sues Kalshi Over Illegal Gambling Claims
New York Attorney General Letitia James filed a lawsuit in Manhattan state Supreme Court against prediction‑market platform Kalshi, alleging the company operates without a license from the New York State Gaming Commission and that its event‑contract trading constitutes illegal gambling. The complaint seeks the forfeiture of all illicit profits, restitution for harmed consumers and civil penalties up to three times the company’s gains – a potential liability of as much as $36 billion, which exceeds Kalshi’s reported valuation.
Kalshi contends it is a federally regulated exchange overseen by the Commodity Futures Trading Commission (CFTC) and has asked that the case be moved to a federal court, calling the state action “political theater.” The suit is part of a wider clash between state regulators and the CFTC over jurisdiction of prediction markets, with several other states already obtaining orders limiting Kalshi’s activities.
Entities
Commodity Futures Trading Commission · Governor Kathy Hochul · Kalshi · Kathy Hochul · Letitia James · New York State Gaming Commission · State of New York
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 10 SOURCES] Kalshi has asked that the case be transferred to a federal court, describing the state lawsuit as political theater. newsbit.nl · www.acierta.mx · lajornadasanluis.com.mx · maquinadoesporte.com.br · criptotendencia.com · +4 more
- [● 5 SOURCES] Other states, including Massachusetts, Michigan, Nevada and Washington, have obtained orders restricting Kalshi’s activities. maquinadoesporte.com.br · criptotendencia.com · www.theyeshivaworld.com · entrevue.fr · www.epochtimes.com
- [● 6 SOURCES] The suit seeks forfeiture of illegal gains, restitution to consumers and civil fines up to three times the company’s profits, potentially totaling $36 billion. maquinadoesporte.com.br · criptotendencia.com · www.theyeshivaworld.com · www.epochtimes.com · filathlos.gr
- [● 10 SOURCES] The lawsuit is part of a broader conflict between state regulators and the CFTC over jurisdiction of prediction markets. newsbit.nl · www.acierta.mx · lajornadasanluis.com.mx · maquinadoesporte.com.br · criptotendencia.com · +4 more
- [● 10 SOURCES] The complaint characterizes Kalshi’s prediction markets as illegal gambling under New York law. newsbit.nl · www.acierta.mx · lajornadasanluis.com.mx · maquinadoesporte.com.br · criptotendencia.com · +4 more
- [● 10 SOURCES] The lawsuit alleges Kalshi operates without a license from the New York State Gaming Commission. newsbit.nl · www.acierta.mx · lajornadasanluis.com.mx · maquinadoesporte.com.br · criptotendencia.com · +4 more
- [● 10 SOURCES] New York Attorney General Letitia James filed a lawsuit against Kalshi in Manhattan state Supreme Court. newsbit.nl · www.acierta.mx · lajornadasanluis.com.mx · maquinadoesporte.com.br · criptotendencia.com · +4 more
- [● 10 SOURCES] Kalshi argues it is regulated by the federal Commodity Futures Trading Commission (CFTC). newsbit.nl · www.acierta.mx · lajornadasanluis.com.mx · maquinadoesporte.com.br · criptotendencia.com · +4 more