Kalshi CEO Defends Prediction Markets, Citing Nasdaq, Uber and Airbnb Amid New York Lawsuit

TL;DR:

• The New York Attorney General filed a lawsuit against Kalshi, seeking at least $36 billion in compensatory damages.
• According to records on The Block Data Dashboard, more than 70% of Kalshi’s trading volume has been concentrated in sports events.
• The company maintains a $22 billion valuation and charges a fixed 1% transaction fee on user trades.

Tarek Mansour, CEO of Kalshi, defended the operating model of prediction markets following legal action initiated by New York authorities in late July. During an interview with financial news network CNBC, the executive compared his firm’s structure to entities like Nasdaq, Uber, and Airbnb to dispute allegations of illegal gambling.

The New York State Attorney General’s Office, led by Letitia James, formalized the lawsuit arguing that the platform’s event contracts are equivalent to unauthorized gambling operations. According to the court document issued by the state agency, the requested sum for compensatory damages could reach $36 billion USD.

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