New York State has sued Kalshi, the online prediction market, accusing it of operating an illegal gambling business and seeking $100,000 for each unauthorized bet placed in the state.
The lawsuit claims Kalshi acts as an unlicensed sportsbook. Kalshi says it is a federally regulated exchange and that state laws do not apply to it.
The case is part of a broader effort by several U.S. states to crack down on prediction markets, which allow users to bet on events such as elections and sports. These states are facing pushback from federal regulators, and the dispute has extended to the Trump administration over which level of government has authority.
New York is one of many states pursuing legal action against Kalshi and similar platforms, according to Al Jazeera.