At issue: A lawsuit recently filed by New York Attorney General Tish James with the full blessing of fellow Dem Gov. 4 A lawsuit recently filed by New York Attorney General Tish James with the full blessing of fellow Dem Gov. And certainly all have “customers” in New York State. 4 Kalshi isn’t the only prediction market – it competes for pole position with Polymarket, which also isn’t licensed by the state (both are regulated by the feds at the CFTC). Kalshi may have thought you can buy an exemption to state law, but that’s not how things work in New York.”