New York Sues Kalshi Alleging 'Illegal Gambling' The lawsuit filed by New York Attorney General Letitia James against prediction market company Kalshi has reignited a longstanding debate over state versus federal jurisdiction in regulating online gambling operations.
At its core, the case centers on whether prediction markets constitute commodities trading or outright gambling.
New York's allegations that Kalshi's services amount to "quintessentially gambling" activities are based on concerns about consumer protection and addiction, particularly among minors.