NY suing Kalshi for running alleged 'illegal gambling operation'

Published July 31, 2026 4:52 PM EDT

The state of New York is suing prediction market platform Kalshi for "running an illegal gambling operation."

‘Illegal gambling operation’

What we know:

Gov. Kathy Hochul and Attorney General Letitia James announced the lawsuit in a press release sent earlier today, July 31.

An investigation conducted by the attorney general's office found that Kalshi's prediction market is an "illegal, unlicensed gambling operation."

"Kalshi's illegal prediction market exposes New Yorkers… to serious personal and financial risk."

The lawsuit is seeking to require the company to pay both fines and restitutions to users, as well as forfeit any "illegal" gains. The lawsuit can be read in its entirety below:

The Source: This article includes information from a press release sent by Attorney General Letitia James' office.

Kathy HochulNew York