{"id":2082,"date":"2026-07-31T17:10:19","date_gmt":"2026-07-31T17:10:19","guid":{"rendered":"https:\/\/modernhomejournals.com\/?p=2082"},"modified":"2026-07-31T17:10:19","modified_gmt":"2026-07-31T17:10:19","slug":"letitia-james-takes-aim-at-prediction-market-kalshi","status":"publish","type":"post","link":"https:\/\/modernhomejournals.com\/?p=2082","title":{"rendered":"Letitia James Takes Aim at Prediction Market Kalshi"},"content":{"rendered":"<div>\n<div>\n<\/div>\n<div>\n<p>New York Attorney General Letitia James sued prediction market Kalshi in state court on Friday, alleging that the company runs an \u201cillegal gambling operation\u201d without proper state licenses.<\/p><p>Read more <a href=\"https:\/\/modernhomejournals.com\/?p=2080\">Indiana State Senate Leader Will Leave Role to Spare Colleagues From Trump\u2019s Wrath<\/a><\/p><p>James\u2019 lawsuit comes amid <span><u>disputes<\/u><\/span> between an independent federal agency and state governments over who has jurisdiction to regulate the rapidly growing prediction market industry, which includes companies like Kalshi and Polymarket. The Commodity Futures Trading Commission, which regulates prediction marketplaces, has argued that the companies are \u201cdesignated contracted markets\u201d that offer <span><u>event contracts<\/u><\/span>, otherwise known as swaps, that offer odds on yes-no scenarios.<\/p>\n<p>State governments have rebutted that argument, contending that the sport contracts offered on prediction markets mirror sports gambling that falls under states\u2019 regulatory purview. Forty-four state attorneys general, including James, <span><u>signed<\/u><\/span> a letter to the CFTC on Monday asking that the agency \u201cstart afresh with its rulemaking and clarify that sports bets and gambling cannot be traded on [designated contract markets], but are instead subject to state law.\u201d<\/p><p>James used a similar stance in her lawsuit against Kalshi, accusing the company of circumventing state regulations on sports betting \u201cby offering what is quintessentially wagering under the guise of \u2018event contracts\u2019 on a \u2018prediction market.\u2019\u201d The lawsuit also accused Kalshi of allowing individuals under the age of 21 to wager on the platform.<\/p>\n<section>\n<div>\n<h2>\n<span>Trending<\/span>\n<\/h2>\n<\/div>\n<div>\n<div>\n<ul>\n<li>\n<div>\n<div>\n<div>\n<div>\n\n<figure class=\"wp-block-image size-large\">\n<figure class=\"wp-block-image size-medium_large\"><img loading=\"lazy\" decoding=\"async\" alt=\"Election 2026 Michigan Abdul El-Sayed\" class=\"wp-image-2070\" height=\"512\" src=\"https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/07\/1f2ddf7a4533d6e0aeae92be6d7a8240-768x512.jpg\" width=\"768\" srcset=\"https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/07\/1f2ddf7a4533d6e0aeae92be6d7a8240-768x512.jpg 768w, https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/07\/1f2ddf7a4533d6e0aeae92be6d7a8240-300x200.jpg 300w, https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/07\/1f2ddf7a4533d6e0aeae92be6d7a8240.jpg 1024w\" sizes=\"auto, (max-width: 768px) 100vw, 768px\" \/><\/figure>\n<\/figure>\n\n<\/div>\n<\/div>\n<\/div>\n<div><h3>\n<span>\n<u>Dana Milbank:<\/u> I Was Prepared to Dislike Abdul El-Sayed. Then I Came to Michigan and Spoke to Him.\n                    <\/span>\n<\/h3><\/div>\n<\/div>\n<\/li>\n<li>\n<div>\n<div>\n<div>\n<div>\n\n<figure class=\"wp-block-image size-large\">\n<figure class=\"wp-block-image size-medium_large\"><img loading=\"lazy\" decoding=\"async\" alt=\"Voters depart a polling place in Kennesaw, GA.\" class=\"wp-image-1446\" height=\"512\" src=\"https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/07\/e1814b8fd9875795879aa6ab01c7789e-768x512.jpg\" width=\"768\" srcset=\"https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/07\/e1814b8fd9875795879aa6ab01c7789e-768x512.jpg 768w, https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/07\/e1814b8fd9875795879aa6ab01c7789e-300x200.jpg 300w, https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/07\/e1814b8fd9875795879aa6ab01c7789e.jpg 1024w\" sizes=\"auto, (max-width: 768px) 100vw, 768px\" \/><\/figure>\n<\/figure>\n\n<\/div>\n<\/div>\n<\/div>\n<div><h3>\n<span>\n                      Democrats Mobilize Over Fears Trump Will Deploy Troops to Polls\n                    <\/span>\n<\/h3><\/div>\n<\/div>\n<\/li>\n<li>\n<div>\n<div>\n<div>\n<div>\n\n<figure class=\"wp-block-image size-large\">\n<figure class=\"wp-block-image size-medium_large\"><img loading=\"lazy\" decoding=\"async\" alt=\"DC: Dr. Anthony Fauci testifying before the Senate Homeland\" class=\"wp-image-1957\" height=\"512\" src=\"https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/07\/ba72971b09b7937db30c60e1faaa5e8f-768x512.jpg\" width=\"768\" srcset=\"https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/07\/ba72971b09b7937db30c60e1faaa5e8f-768x512.jpg 768w, https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/07\/ba72971b09b7937db30c60e1faaa5e8f-300x200.jpg 300w, https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/07\/ba72971b09b7937db30c60e1faaa5e8f.jpg 1024w\" sizes=\"auto, (max-width: 768px) 100vw, 768px\" \/><\/figure>\n<\/figure>\n\n<\/div>\n<\/div>\n<\/div>\n<div><h3>\n<span>\n                      Redacted Fauci Diary Entries Depict Him Personally Helping Katie Miller\n                    <\/span>\n<\/h3><\/div>\n<\/div>\n<\/li>\n<li>\n<div>\n<div>\n<div>\n<div>\n\n<figure class=\"wp-block-image size-large\">\n<figure class=\"wp-block-image size-medium_large\"><img loading=\"lazy\" decoding=\"async\" alt=\"DCHA fines AP - 709108386479\" class=\"wp-image-2063\" height=\"512\" src=\"https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/07\/158198cb2c2c8c603c40b24eacd41f30-768x512.jpg\" width=\"768\" srcset=\"https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/07\/158198cb2c2c8c603c40b24eacd41f30-768x512.jpg 768w, https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/07\/158198cb2c2c8c603c40b24eacd41f30-300x200.jpg 300w, https:\/\/modernhomejournals.com\/wp-content\/uploads\/2026\/07\/158198cb2c2c8c603c40b24eacd41f30.jpg 1024w\" sizes=\"auto, (max-width: 768px) 100vw, 768px\" \/><\/figure>\n<\/figure>\n\n<\/div>\n<\/div>\n<\/div>\n<div><h3>\n<span>\n                      D.C.\u2019s Worst Landlord Is Its Housing Authority\n                    <\/span>\n<\/h3><\/div>\n<\/div>\n<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/section>\n<p>James\u2019 lawsuit asked a judge to bar Kalshi from operating within the state by offering \u201ccontracts relating to sports, culture, elections, and other events\u201d without required licenses. It also asked for Kalshi to pay restitution to consumers, pay a fine equal to three times the gains the company made and forfeit any alleged illegal profits.<\/p><p>\u201cNew York\u2019s gambling laws protect children from underage betting and help combat gambling addiction,\u201d James said in a statement announcing the lawsuit. \u201cNo matter what they call themselves, prediction markets like Kalshi are gambling platforms, plain and simple. By ignoring our laws, Kalshi is running an illegal operation and harming New Yorkers in the process.\u201d<\/p><p>Read more <a href=\"https:\/\/modernhomejournals.com\/?p=2078\">Trump Plans to Impose Deep Cuts to Western States\u2019 Water Usage<\/a><\/p><p>The CFTC preemptively requested a temporary restraining order in federal court ahead of James\u2019 lawsuit to stop the state from pursuing civil or criminal enforcement actions against Kalshi while litigation continues.<\/p><p>Kalshi and New York were engaged in \u201congoing negotiations\u201d on a comprehensive tax proposal prior to the lawsuit, a source familiar with Kalshi\u2019s negotiations told NOTUS. The source said New York did not respond to the proposal \u201cin substance\u201d and then \u201cabandoned\u201d the idea.<\/p><p>James\u2019 office did not immediately respond to a request for comment about the tax negotiations.<\/p><p>\u201cIt\u2019s sad to see this type of political theater from the leadership in our own state,\u201d Elisabeth Diana, Kalshi\u2019s head of communications, said in a statement. \u201cStates can\u2019t just shut down a federally licensed exchange. This would also hurt New Yorkers, who would be driven offshore. We love New York, we love New Yorkers, and New Yorkers love our product.\u201d<\/p><p>Read more <a href=\"https:\/\/modernhomejournals.com\/?p=2077\">Saying Bye to July<\/a><\/p>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>The lawsuit comes amid disputes between the federal government and states over who has jurisdiction to regulate the rapidly growing prediction market industry.<\/p>\n","protected":false},"author":1,"featured_media":2081,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[],"class_list":["post-2082","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-courts"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Letitia James Takes Aim at Prediction Market Kalshi - Modern Home Journals<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/modernhomejournals.com\/?p=2082\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Letitia James Takes Aim at Prediction Market Kalshi - 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