New York has filed a lawsuit against Kalshi, accusing the prediction market operator of running an illegal gambling operation. The legal action comes after negotiations concerning tax revenue and consumer protections failed. New York Attorney General Letitia James is leading the suit, which targets the largest U.S. prediction market in an emerging industry that allows users to bet on various outcomes. Earlier this year, similar legal actions were taken against Coinbase and Gemini for offering prediction markets.

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https://www.wsj.com/tech/new-york-alleges-kalshi-running-illegal-gambling-operation-18ae71b0

New York Sues Kalshi After Talks to Rein In Prediction Market Break Down

Negotiations included talks over tax revenue and consumer protections

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Kalshi advertisement for their prediction betting service, featuring "Paul trades on Weather." A Kalshi advertisement in Manhattan.Richard B. Levine/Levine Roberts/ZUMA Press

New York state doubled down on its fight to rein in prediction markets by suing Kalshi, alleging the company runs an illegal gambling operation, after weeks of negotiations over tax revenue and customer protections broke down.

The suit filed Friday by New York Attorney General Letitia James targets the biggest prediction market operator in the U.S. in a nascent industry where users can wager on just about anything. Earlier this year, James also sued Coinbase and Gemini for offering prediction markets.

New York Sues Kalshi After Talks to Rein In Prediction Market Break Down

New York Sues Kalshi After Talks to Rein In Prediction Market Break Down

Negotiations included talks over tax revenue and consumer protections

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