New York Governor Kathy Hochul and Attorney General Letitia James announced that the state is suing the company for running an illegal gambling operation. An investigation by state authorities concluded that Kalshi was running an “illegal, unlicensed gambling operation” in the state. “No matter what they call themselves, prediction markets like Kalshi are gambling platforms, plain and simple,” said James. “By ignoring our laws, Kalshi is running an illegal operation and harming New Yorkers in the process.” More on prediction markets: OpenAI Strikes Bold Deal With Kalshi to Mix Together the Most Hated Technologies in Existence: AI and Prediction Markets