This is one outlet's own report from Gothamist — the article as it was filed. Other outlets are covering the same event; open the full story to compare every source side by side.
NY looks to shut down Kalshi, have it pay $36 billion in new lawsuit
A non-profit newsroom, powered by WNYC. Gothamist Listen Live Donate News NY looks to shut down Kalshi, have it pay $36 billion in new lawsuit By Jimmy Vielkind Published Jul 31, 2026 at 11:48 a.m. ET
Twitter Reddit Email Never miss a story Email address By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms . By Jimmy Vielkind Published Jul 31, 2026 at 11:48 a.m. ET
Twitter Reddit Email We rely on your support to make local news available to all Make your contribution now and help Gothamist thrive in 2026. Donate today
Gothamist is funded by sponsors and member donations
A lawsuit filed Friday accuses the prediction platform of illegally functioning as an unregulated sports betting platform. The 32-page complaint, filed in state Supreme Court in Manhattan, seeks an injunction that would effectively bar Kalshi from operating as well as $36 billion in penalties.
New York officials also said the exchange, which is open to people over 18, violates state law that sets a minimum age of 21 to bet on sports.
“New York’s gambling laws protect children from underage betting and help combat gambling addiction,” Attorney General Letitia James said in a statement. “By ignoring our laws, Kalshi is running an illegal operation and harming New Yorkers in the process. We are taking them to court to uphold our laws and protect New Yorkers.”
“It's sad to see this type of political theater from the leadership in our own state,” Kalshi spokesperson Elisabeth Diana said in a statement. “This would also hurt New Yorkers, who would be driven offshore. We love New York, we love New Yorkers, and New Yorkers love our product."
James and Gov. Kathy Hochul, both Democrats, announced the suit after federal courts ruled against Kalshi in a separate case that the company brought to shield itself from state regulation.
More than a dozen states are battling with the company and other prediction market platforms over whether they should be subject to state gambling laws. The company says it should be regulated by the federal Commodity Futures Trading Commission, which during the Trump administration has sparred with states over who sets the rules for the burgeoning industry.
Prediction markets let their users buy contracts that pay out if they have the right answers to given questions, such as who will win an election or baseball game, or whether the temperature will hit a certain level. New York’s lawsuit says this is gambling by another name and without the safeguards.
“What [Kalshi] offers through its platform is quintessentially gambling: It allows a bettor to stake or risk money upon the outcome of a contest of chance or a future contingent event not under the bettor’s control or influence, upon an agreement or understanding that he will receive something of value in the event of a certain outcome,” the state says in the lawsuit.
But supporters of prediction markets say they’re different from gambling because the probability of a certain outcome — expressed as a prices — change over time and is traded among users. They say the markets are the most accurate predictors of future events, which is valuable for making decisions.
Kalshi officials said the New York suit is targeting offerings that range far beyond sports betting. The company was negotiating with state officials, including about a new law that would let the state collect taxes on wagers, the company said.
Daniel Wallach, a lawyer who tracks the gambling industry, said the new lawsuit could mean personal liability for company executives and have effects on its business across the country.
“New York State case could bring massive consequences for Kalshi,” he wrote on social media.
Jimmy Vielkind covers how state government and politics affect people throughout New York. He has covered Albany since 2008, most recently as a reporter for The Wall Street Journal. Jimmy led a team of reporters that won a New York Press Club award for coverage of Andrew Cuomo’s downfall and was on a team that won a Gerald Loeb Award for coverage of Amazon’s HQ2 process. A native of the Capitol Region, Jimmy has two degrees in urban planning. His position is funded by a grant from the Corporation for Public Broadcasting. Reach Jimmy at [email protected] .
The appointment of Jennifer Jones Austin comes as Mamdani faces pressure from the left for not reforming policing.
The health department said it has been more than two weeks since a new case was reported.
Catch up on the most important headlines with a roundup of essential NYC stories, delivered to your inbox daily.
Gothamist is a website about New York City news, arts, events and food, brought to you by New York Public Radio.
AIPROPX is an independent multi-source news index — we track, compare, and connect coverage from across the web into one place you won't find anywhere else.
