New York sues Kalshi: Hochul and James call prediction-market platform an illegal gambling operation

On July 31, Gov. Hochul and AG James announced New York has sued KalshiEX LLC, alleging its prediction-market platform is an unlicensed, illegal gambling operation that exposes New Yorkers — including those under 21 — to financial risk. The suit seeks forfeiture of illegal gains, consumer restitution, and treble fines. At least four other states (MA, MI, NV, WA) have won court orders restricting Kalshi. Backfilled from July 31; missed by prior refresh windows.