Hochul and James ask a court to shut Kalshi out of New York

KalshiEX, LLC was sued by New York on Thursday. The state asked a Manhattan court to shut down the prediction-market operator, order it to pay back all its New York profits, and impose a penalty equal to three times those profits.

New York says Kalshi’s contracts are bets in everything but name

The announcement came from Governor Kathy Hochul and Attorney General Letitia James. The state’s case, brought in a verified petition filed in the New York Supreme Court under Executive Law 63(12), is that a Kalshi customer risks money on an unpredictable outcome over which they have no control and is paid if it comes to pass.

That’s the legal definition of gambling, the Attorney General’s Office says.

“No matter what they call themselves, prediction markets like Kalshi are gambling platforms, plain and simple,” James said in the announcement.

The petition claims that by not getting a license from the New York State Gaming Commission, Kalshi avoided the ~51% tax that licensed mobile sportsbooks pay.

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