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Governor Kathy Hochul and Attorney General Letitia James announced that New York has sued KalshiEX, LLC (Kalshi) for running an illegal gambling operation in New York through its prediction market platform.

Kalshi launched in 2021 as a service that allowed users to bet money on the outcome of a wide range of future events.

In 2025, Kalshi launched sports “trading,” claiming it offered legal sports betting markets, accessible to Americans in all 50 states, and encouraging bettors to wager on the outcomes of major sporting events.

Today, Kalshi offers users the ability to bet on events including sports, culture, and elections on its website and app.

An investigation by the Office of the Attorney General (OAG) found that Kalshi’s prediction market is an illegal, unlicensed gambling operation. Kalshi’s illegal prediction market exposes New Yorkers – including those under the legal gambling age of 21 – to serious personal and financial risk. The lawsuit is seeking a court order stopping Kalshi from operating as an unlicensed gambling business and requiring the company to pay fines, forfeit all illegal gains, and pay restitution to users.

“Kalshi has chosen to ignore New York’s gaming laws, which exist to protect consumers, prevent problematic gambling, deliver funding for critical public services, and ensure that every company plays by the same rules,” Governor Hochul said. “This choice has consequences, and working closely with Attorney General James, New York is taking action to stop this illegal behavior and bring Kalshi into compliance, because no company is above the law.”

Attorney General Letitia James said, 

“New York’s gambling laws protect children from underage betting and help combat gambling addiction. No matter what they call themselves, prediction markets like Kalshi are gambling platforms, plain and simple. By ignoring our laws, Kalshi is running an illegal operation and harming New Yorkers in the process. We are taking them to court to uphold our laws and protect New Yorkers.”

The lawsuit alleges that Kalshi’s prediction markets meet the legal definition of gambling because the outcomes of the events on which its users are betting are uncertain and outside the control of the bettor or hinge on a game of chance.

Despite this, Kalshi has failed to obtain a license from the New York State Gaming Commission (Gaming Commission), sidestepping its obligation to pay taxes like licensed casinos and mobile sports gambling platforms do. This tax revenue from gambling regulation funds public schools, sports programs for underserved youth, and problem gambling education and treatment.

Kalshi’s prediction markets are also available to users between the ages of 18-20, even though New York law requires a person to be at least 21 years old to participate in mobile sports betting. Exposing young people to online gambling can have damaging effects on their mental and financial wellbeing. Recent research has shown that gambling among young people is associated with psychological distress, financial difficulties, and increased risk of gambling-related harms in adulthood.

In the lawsuit, OAG is asking the court to order Kalshi to forfeit all illegal gains, distribute restitution to consumers who were harmed, and pay fines equal to three times the gains the company made through its illegal actions.

This is the latest action in Governor Hochul and Attorney General James’ continued efforts to enforce New York’s gambling laws and protect New York consumers.

Attorney General James has issued multiple consumer and industry alerts warning New Yorkers about the hazards of gambling and encouraging companies to comply with state laws.

In April 2026, Attorney General James sued Coinbase and Gemini for running illegal gambling platforms.

Also in April 2026, Governor Hochul signed an Executive Order banning state employees from engaging in insider trading using prediction markets like Kalshi.

In January of 2026, Attorney General James sued Valve, a video game developer, for illegally promoting gambling through video games popular with children and teenagers.

In October 2025, the Gaming Commission demanded that Kalshi cease and desist their ongoing operation of an unlicensed mobile sports wagering platform.

June 2025, Attorney General James stopped 26 illegal online sweepstakes casinos that offered slots, table games, and sports betting using virtual coins that could be exchanged for cash and prizes.

Attorney General James urges New Yorkers to ensure gambling platforms are registered with the New York State Gaming Commission and report any misconduct or gaming fraud to OAG by filing a complaint online, which can be done anonymously, or calling 1-800-771-7755.

This matter is being handled by Assistant Attorneys General K. Brent Tomer, Alejandra de Urioste, Nina Varindani, and Senior Enforcement Counsel Tanya Trakht, with assistance from Data Scientist Michael Amadi and Legal Assistants Renata Bodner and Kalon Corrallo all of the Investor Protection Bureau, and Senior Detective Brian Metz of the Investigations Division. The Investor Protection Bureau is led by Bureau Chief Shamiso Maswoswe and Deputy Bureau Chief Kenneth Haim and is a part of the Division of Economic Justice, which is led by Chief Deputy Attorney General Chris D’Angelo and overseen by First Deputy Attorney General Jennifer Levy.

GOVERNOR HOCHUL ANNOUNCES STATEWIDE SPEED WEEK 2 ENFORCEMENT CAMPAIGN

More Than 14,000 Tickets Issued in Week 1 Speed Enforcement in Early June

Governor Kathy Hochul today announced that the State Police and local law enforcement agencies are increasing patrols next week to crack down on speeding. The campaign, which begins on Monday, August 3, and continues through Sunday, August 9, is the second Governor’s Traffic Safety Committee-sponsored (GTSC) high-visibility statewide enforcement effort this summer to curb speeding and prevent avoidable crashes caused by unsafe speed.

“These enforcement campaigns are crucial, as speeding continues to be a leading cause of fatal crashes each year in New York State,” Governor Hochul said. “As always, we have zero tolerance for those who endanger others by driving recklessly, so I urge everyone to do their part to keep our roadways as safe as possible by following the speed limits, avoiding distractions and never driving while impaired.”

New York State Department of Motor Vehicles Acting Commissioner Christian Jackstadt said, “Our message to drivers is simple: slow down and obey the posted speed limits. Speeding reduces a driver’s ability to drive safely and react to unexpected hazards, putting themselves and others at risk of being involved in a potentially deadly crash. We thank our law enforcement community for helping keep our roadways as safe as possible by removing dangerous drivers.”

The prior speeding crackdown, “Speed Week 1,” was conducted from Monday, June 8, through Sunday, June 14. During that period, state and local law enforcement statewide issued a total of 56,578 tickets including 14,005 for speeding, 2,220 for distracted driving and 1,386 for impaired driving.

Among counties, Nassau and Suffolk on Long Island led in the number of tickets issued with 6,158 and 5,367, respectively. Last year, GTSC launched the “Drive Safe Long Island” campaign to specifically address speeding and other dangerous driving issues in the region. That effort includes a partnership with the Long Island Ducks baseball team to promote traffic safety at their games.

New York State Police Superintendent Steven G. James said, “Enforcement campaigns like this demonstrate our shared commitment to raising awareness about the dangers of speeding and keeping New York’s roadways safe. Through this campaign, and our enforcement efforts year-round, we are working to reduce speed-related crashes and encourage safer driving habits. Together with our law enforcement partners, we will continue proactive enforcement to hold dangerous drivers accountable and help ensure everyone reaches their destination safely.”

In New York in 2024, according to data from the Institute for Traffic Safety Management & Research’s (ITSMR) Traffic Safety Statistical Repository (TSSR), there were 34,042 police-reported, speed-related crashes, 315 of which involved a fatality, and more than 12,000 of which involved a personal injury. Preliminary TSSR data for 2025 shows more than 24,000 police-reported, speed-related crashes with 231 involving a fatality and 16,644 involving an injury.

Speeding-related fatalities affect communities nationwide every year. In 2024, according to the U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA), there were 11,288 speed-related traffic fatalities, accounting for 29 percent of all traffic fatalities. NHTSA also says young drivers have a higher chance of being involved in speeding-related crashes. In 2024, 39 percent of male drivers and 20 percent of female drivers in the 15- to 20-year-old age group involved in fatal traffic crashes were speeding.