Attorney General Letitia James accuses the platform of conducting illegal gambling activities without a gaming commission license. The lawsuit alleges that Kalshi’s prediction markets are essentially gambling, and the company exposed New York residents to risks—including individuals under the legal age of 21.
The state’s demands: block Kalshi’s operations in New York, refund users’ money, seize all profits, and pay a penalty equal to three times the revenue generated, plus $100,000 for each contract offer.
In parallel, the CFTC has filed a counterclaim, seeking to prevent states from prosecuting CFTC-registered platforms; the federal regulator insists on exclusive jurisdiction over prediction markets.
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