New York says Kalshi's prediction bets are just gambling in a trench coat
New York Attorney General Letitia James just sued Kalshi, the buzzy prediction market startup headquartered in the state, accusing it of running an illegal gambling operation without a license from the state's gaming commission. The lawsuit claims Kalshi exposed New Yorkers, including people under the legal gambling age of 21, to serious financial risk. New York wants the court to block Kalshi from operating in the state and force it to pay restitution to customers. It's now one of at least six states suing Kalshi, joining Nevada, New Mexico, Arizona and Washington, even as the CFTC keeps backing the platform federally.
Nothing says 'innovative fintech' like getting sued by six state attorneys general in a row.