The Attorney General's office found that Kalshi is an illegal prediction market that puts New Yorkers at risk. The lawsuit wants fines and restitution for members.

The lawsuit says Kalshi's markets are like gambling because the outcomes are uncertain. Kalshi does not have a license from the New York State Gaming Commission. It also allows 18-20 year olds to use it, but New York law says users must be at least 21.

New York Governor Kathy Hochul said Kalshi ignored New York's gaming laws, which protect consumers and ensure fair play. She is working with the Attorney General to stop Kalshi's illegal behavior.

Attorney General James said prediction markets like Kalshi are just gambling platforms. She is taking Kalshi to court to uphold the law and protect New Yorkers.

This lawsuit comes after New York sued other companies for similar allegations. Kalshi had also sued New York state, but a judge denied its request for a preliminary injunction.

The federal government's Commodity Futures Trading Commission has sued New York, saying it has jurisdiction over prediction markets. The CFTC chairman said New York is trying to shut down prediction markets without a good reason.

A Kalshi spokesperson said it is sad to see New York's leadership playing politics. The spokesperson said states cannot shut down a federally licensed exchange and that New Yorkers love Kalshi's product.

The lawsuit is about politics.

The case is ongoing.