Feed / Enforcement & compliance
By SectorWire desk ·
New York launched a $36bn legal action alleging that Kalshi breached state gambling laws. The state accused the prediction market operator of disregarding its gaming rules.
Kalshi faces a state legal challenge over whether its prediction market complies with gambling law.
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The lawsuit contests Kalshi’s legal authority to offer its products in New York.
The lawsuit adds to the legal uncertainty facing Kalshi’s prediction-market operations.
The lawsuit seeks to stop Kalshi’s New York operations and recover money for consumers.
The dispute concerns whether states can apply gambling rules to sports-event contracts offered by federally regulated exchanges.
The findings bear on state challenges to Kalshi and Polymarket's position that their contracts fall exclusively under CFTC jurisdiction.
The analysis questions Kalshi’s explanation for concentrated activity in its ether perpetual contracts.