{"id":91723,"date":"2026-07-31T14:53:17","date_gmt":"2026-07-31T14:53:17","guid":{"rendered":"https:\/\/site.itshrt.com\/worldnews\/new-york-sues-kalshi-alleging-the-prediction-market-enables-illegal-gambling\/"},"modified":"2026-07-31T14:53:17","modified_gmt":"2026-07-31T14:53:17","slug":"new-york-sues-kalshi-alleging-the-prediction-market-enables-illegal-gambling","status":"publish","type":"post","link":"https:\/\/site.itshrt.com\/worldnews\/new-york-sues-kalshi-alleging-the-prediction-market-enables-illegal-gambling\/","title":{"rendered":"New York sues Kalshi, alleging the prediction market enables illegal gambling"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<\/p>\n<div id=\"\">\n<p>New York prosecutors are accusing Kalshi of running an illegal gambling operation, becoming the latest state to file a lawsuit against the prediction market.<\/p>\n<p>The <a href=\"https:\/\/ag.ny.gov\/sites\/default\/files\/court-filings\/new-york-v-kalshiex-llc-petition-2026.pdf\" target=\"_blank\" rel=\"noopener\">complaint<\/a>\u00a0seeks to halt Kalshi&#8217;s operations in New York, force it to pay restitution to consumers who made bets on the platform, forfeit its profits and pay fines equal to three times the amount it has generated through its operations in the state.<\/p>\n<p>In\u00a0<a href=\"https:\/\/ag.ny.gov\/press-release\/2026\/governor-hochul-and-attorney-general-james-announce-new-york-has-sued-kalshi\" target=\"_blank\" rel=\"noopener\">announcing<\/a> the lawsuit, the office of New York Attorney General Letitia James said Kalshi exposes state residents to financial and personal risk. The company, which is based in New York City, also allows people who are younger than the state&#8217;s legal gambling age of 21 to use its services, the suit notes.<\/p>\n<p>&#8220;New York&#8217;s gambling laws protect children from underage betting and help combat gambling addiction,&#8221; James said in a statement. &#8220;No matter what they call themselves, prediction markets like Kalshi are gambling platforms, plain and simple.&#8221;<\/p>\n<p>New York Governor Kathy Hochul also weighed in, accusing Kalshi in a statement of ignoring the state&#8217;s gaming laws.<\/p>\n<p>The popularity of prediction markets has exploded since the 2024 U.S. presidential election. The combined monthly global trading volume on Kalshi, Polymarket and similar platforms has soared from less than $5 billion in September 2025 to about $24 billion as of April 2026, according to the\u00a0<a href=\"https:\/\/www.pewresearch.org\/short-reads\/2026\/05\/27\/trading-volume-on-prediction-markets-has-soared-in-recent-months\/\" target=\"_blank\" rel=\"noopener\">Pew Research Center<\/a>.<\/p>\n<p>By comparison, Americans bet an average of $14 billion per month on legal sports betting sites, the nonpartisan research firm found.<\/p>\n<p>Kalshi has previously said that courts have recognized its status as a federally regulated exchange.<\/p>\n<p>&#8220;It&#8217;s sad to see this type of political theater from the leadership in our own state,&#8221; Kalshi spokeswoman Elisabeth Diana said in a statement to CBS News. &#8220;States can&#8217;t just shut down a federally licensed exchange. This would also hurt New Yorkers, who would be driven offshore. We love New York, we love New Yorkers, and New Yorkers love our product.&#8221;\u00a0<\/p>\n<h2>States and feds clash<\/h2>\n<p>The New York lawsuit highlights the broader legal battle over whether states or the federal government have the authority to regulate prediction markets, which allow users to bet on the outcome of sports, elections and other events.<\/p>\n<p>A growing number of states are suing prediction markets, claiming they offer illegal sports betting and gambling services that violate state laws.\u00a0<\/p>\n<p>The Commodity Futures Trading Commission, the federal agency that oversees prediction markets, argues that Congress has given it exclusive regulatory jurisdiction over the platforms. The agency has filed legal actions against at least nine states, including New York, to block them from regulating the markets.<\/p>\n<p>Earlier this week, a federal judge <a href=\"https:\/\/www.cbsnews.com\/minnesota\/news\/prediction-markets-ban-law-block-judge\/\" target=\"_blank\" data-invalid-url-rewritten-http=\"\">temporarily stopped Minnesota<\/a> from enforcing its recently enacted\u00a0<a href=\"https:\/\/www.revisor.mn.gov\/bills\/94\/2026\/0\/SF\/4511\/versions\/latest\/\" target=\"_blank\" rel=\"noopener\">law<\/a>\u00a0banning most bets on prediction markets. The decision came after the CFTC filed a lawsuit seeking to halt the law from taking effect in August. <\/p>\n<section class=\"content__body--footer\">\n<p class=\"content__meta--editors\">\n      Edited by<\/p>\n<p>                                  <a href=\"https:\/\/www.cbsnews.com\/team\/alain-sherter\/\" class=\"byline__author__link\" data-invalid-url-rewritten-http=\"\">Alain  Sherter<\/a>\n                      <\/p>\n<\/section>\n<p>  <!-- data-recirc-source=\"queryly\" --><\/p>\n<aside class=\"component list recirculation component--type-recirculation  \">\n<p><h3 class=\"component__title\">More from CBS News<\/h3>\n<\/p>\n<div class=\"component__item-recirc-block\">\n<p><h3 class=\"component__title\">Go deeper with The Free Press<\/h3>\n<\/p><\/div>\n<\/aside>\n<section class=\"content__body--footer\">\n      <!-- tags --><br \/>\n    <\/section>\n<\/p><\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/www.cbsnews.com\/news\/new-york-sues-kalshi-illegal-gambling\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York prosecutors are accusing Kalshi of running an illegal gambling operation, becoming the latest state to file a lawsuit<\/p>\n","protected":false},"author":1,"featured_media":91724,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[33],"tags":[],"class_list":["post-91723","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-us"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>New York sues Kalshi, alleging the prediction market enables illegal gambling - World News<\/title>\n<meta name=\"description\" content=\"A growing number of U.S. states are seeking to crack down on prediction markets, but face pushback from federal regulators.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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