New York Sues Kalshi, Alleging Prediction Market Is Illegal Gambling The lawsuit filed by New York Attorney General Letitia James against prediction market platform Kalshi has sparked a high stakes battle over jurisdictional authority.
At its core, the dispute revolves around the distinction between federally regulated derivatives and state controlled gaming laws.
Kalshi insists that its event contracts fall within federal oversight, exempting it from New York's regulations on sports betting and underage wagering.