After years of facilitating a surge in gambling addiction by allowing users to make dubious bets on anything from the outcome of the World Cup to deadly conflict, trading platform Kalshi is finally facing a serious regulatory challenge.
New York Governor Kathy Hochul and Attorney General Letitia James announced that the state is suing the company for running an illegal gambling operation. An investigation by state authorities concluded that Kalshi was running an “illegal, unlicensed gambling operation” in the state.
Officials also pointed out that Kalshi was offering its services to “those under the legal gambling age of 21,” putting them at “serious personal and financial risk.” In New York, a person has to be at least 21 to participate in mobile sports betting.
The lawsuit is seeking to shut down Kalshi in New York and is requiring it to pay a $100,000 penalty for each attempt to offer sports betting and fees three times its gains in the state, which could saddles the company with paying an estimated $36 billion.
