New York sues Kalshi for allegedly running an ‘illegal gambling operation’

July 31, 2026 Emma Roth

Kalshi logo on a green background.

New York is suing Kalshi over claims the prediction market is running "an illegal gambling operation." In the lawsuit, New York Attorney General Letitia James accuses Kalshi of violating state laws by accepting wagers without a license from the state's gaming commission, as reported earlier by CNBC.

An investigation from the Office of the Attorney General (OAG) found Kalshi exposes New York residents "to serious personal and financial risk," including people under the legal gambling age of 21, the lawsuit alleges. The state asks the court to block Kalshi - which is headquartered in New York - from operating in the state and to pay restituti …

Read the full story at The Verge.

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