New York Sues Kalshi Prediction Market Alleging 'Illegal Gambling Operation' New York's lawsuit against Kalshi, a prediction market operator, marks a significant escalation in the battle between states and the federal government over who has jurisdiction to regulate these emerging platforms.
At its core, this dispute is about whether prediction markets are gambling operations or financial exchanges.
The New York lawsuit claims that Kalshi's prediction markets are a form of gambling because users bet on uncertain events they cannot control.