New York Governor Kathy Hochul and Attorney General Letitia James announced early Friday morning that they filed suit against Kalshi for allegedly “running an illegal gambling operation in New York through its prediction market platform.” The lawsuit came soon after the US Court of Appeals for the Second Circuit denied Kalshi’s request for an injunction in its federal case seeking to stop New York from taking action. That opened the door for the attorney general to sue Kalshi in state court in New York, where the company is headquartered. The lawsuit was filed in the County of New York. The state is also seeking a temporary restraining order to immediately stop Kalshi from operating in New York. The AG asked “the court to order Kalshi to forfeit all illegal gains, distribute restitution to consumers who were harmed, and pay fines equal to three times the gains the com…

Kalshi’s illegal prediction market exposes New Yorkers – including those under the legal gambling age of 21 – to serious personal and financial risk. The lawsuit is seeking a court order stopping Kalshi from operating as an unlicensed gambling business and requiring the company to pay fines, forfeit all illegal gains, and pay restitution to users. “Kalshi has chosen to ignore New York’s gaming laws, which exist to protect consumers, prevent problematic gambling, deliver funding for critical public services, and ensure that every company plays by the same rules,” Governor Hochul said. “This choice has consequences, and working closely with Attorney General James, New York is taking action to stop this illegal behavior and bring Kalshi into compliance, because no company is above the law.” “New York’s gambling laws protect children from underage betting and help combat…