05:53 AM EDT, 07/31/2026 (MT Newswires) -- New York Attorney General Letitia James and New York Governor Kathy Hochul sued Kalshi on Friday, alleging its prediction market platform operates as an illegal gambling business under state law.

The lawsuit claims Kalshi allows users, including those under 21, to place bets on uncertain events without a state gaming license, violating New York gambling laws.

The state is seeking a court order to halt Kalshi's operations in New York, force the company to forfeit illegal gains, pay restitution to consumers who were harmed, and fines equal to three times its profits from the alleged violations.

Kalshi did not immediately respond to MT Newswires' request for comment.