New York state on Friday sued Kalshi, claiming that the company is illegally operating a gambling platform.
The lawsuit was filed in a Manhattan state court, alleging that Kalshi accepts wagers as a gambling business in disregard for the state's constitution and laws by not being registered with the New York State Gaming Commission.
"No matter what they call themselves, prediction markets like Kalshi are gambling platforms, plain and simple," said New York Attorney General Letitia James.
Governor Kathy Hochul stated that the state is taking action to stop what it views as illegal behavior.
Kalshi, which has its headquarters in New York City, expressed disappointment with the state's decision.
"It's sad to see this type of political theater from the leadership in our own state," a Kalshi spokesperson said.
The lawsuit also seeks total restitution to users who have placed trades on the platform.
