New York sues prediction market platform Kalshi alleging 'illegal gambling operation'

New York sued prediction market platform Kalshi, alleging it operates as an 'illegal, unlicensed gambling operation' and seeking to halt its activities and seize profits. The lawsuit, filed in Manhattan's state Supreme Court, is part of a broader dispute over state versus federal regulation of prediction markets, with Kalshi and other platforms asserting federal licensing protects them from state oversight.