Tensions are boiling over in the Big Apple, as New York State Governor Kathy Hochul warned the prediction market platform that it cannot buy itself an exemption from the law as the legal battle between the state and the sector escalates.
The New York attorney general on Friday (31 July) filed a lawsuit against Kalshi, accusing the prediction market platform of breaking the law by offering unregulated gambling under the guise of events contracts.
According to the Wall Street Journal, Kalshi had offered to pay a 6% tax on prediction market traders, which would raise $10bn over five years for the state.
However, Governor Hochul posted on X: “Kalshi can promise 100% of its revenue. You can’t buy yourself an exemption from New York law. If an illegal bookie offers the state a share of their profits, we’ll still shut them down.”
Kalshi can promise 100% of its revenue.
You can’t b..