New York Attorney General Letitia James sues Kalshi, alleging the company’s prediction market amounts to an illegal, unlicensed gambling operation in the state. The lawsuit argues that the trading contracts are effectively bets on outcomes that depend more on chance than skill and therefore fall under New York’s gambling laws.

Multiple outlets report that the state seeks to stop Kalshi’s contracts related to a range of events, including sports, culture, and elections, and to require forfeiture of profits in some reporting. The filings add another legal step in a broader “prediction market war,” with states increasingly using gambling statutes to challenge operators such as Kalshi and others. Bloomberg and CNBC note the dispute comes as Kalshi faces additional hurdles after a federal judge recently denied the company’s request to intervene against the New York Gaming Commission. The outlets emphasize that the suit is one of several parallel legal actions shaping the industry’s regulatory fight.