New York has sued prediction-market operator KalshiEX, alleging the company runs an unlicensed gambling platform that allows users, including people younger than 21, to wager on sports, elections and other events.
The lawsuit seeks an order stopping Kalshi from operating an unlicensed gambling business in the state, along with restitution, forfeiture of allegedly illegal gains and fines equal to three times those gains.
Gov. Kathy Hochul and Attorney General Letitia James announced the case Friday. The state alleges Kalshi's event contracts meet New York's legal definition of gambling because their outcomes are uncertain and outside a bettor's control or depend on chance.
Kalshi began offering sports-related contracts in 2025 and presents them as legal trading markets available nationwide, according to the attorney general's office. The complaint alleges the company has not obtained a license from the New York State Gaming Commission.
State officials also allege the platform is available to users ages 18 to 20, while New York requires mobile sports-betting customers to be at least 21.
The state contends that operating without a gaming license allows Kalshi to avoid taxes paid by licensed casinos and mobile sports-betting companies. New York uses regulated gambling revenue for public schools, youth sports and problem-gambling services.
The allegations have not been adjudicated. New Yorkers can check whether a gambling platform is registered with the Gaming Commission and report suspected gaming fraud to the attorney general's office at 800-771-7755.
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