A lawsuit filed Friday accuses the prediction platform of illegally functioning as an unregulated sports betting platform. “New York’s gambling laws protect children from underage betting and help combat gambling addiction,” Attorney General Letitia James said in a statement. “By ignoring our laws, Kalshi is running an illegal operation and harming New Yorkers in the process. “It's sad to see this type of political theater from the leadership in our own state,” Kalshi spokesperson Elisabeth Diana said in a statement. “New York State case could bring massive consequences for Kalshi,” he wrote on social media.