Casino Lobby Fueled NY Lawsuit Against Kalshi, CEO Mansour Claims
Tarek Mansour, CEO of Kalshi, has asserted that the legal action taken by New York against his prediction market platform is being pushed by the gambling industry lobby. He warned that shutting down Kalshi in New York would leave ‘a lot of pissed off New Yorkers.’
New York is suing Kalshi for operating as an unlicensed gambling platform. The lawsuit, filed on July 31, argues that event contracts are akin to gambling because outcomes are uncertain, outside the bettor’s control, or hinge on chance. It seeks restitution for New Yorkers’ losses and penalties of $100,000 for each illicit contract offered.
Appearing on CNBC’s Squawk Box, Mansour claimed the complaint is driven by traditional gambling firms fearing disruption from prediction markets. ‘You have an industry, the prediction market industry, that is disruptive, that is growing fast, consumers are adopting it, and it’s threatening a legacy incumbent industry that is unhappy about that,’ he said. He emphasized that Kalshi operates under CFTC oversight, rejecting any ‘Wild West’ characterization.
CFTC Chairman Michael Selig criticized New York Attorney General Letitia James for attempting ‘an unprecedented sudden shutdown of prediction markets nationwide.’ He stated, ‘The CFTC has already sued to stop this and will continue to defend its jurisdiction.’
Mansour revealed that Kalshi, which has about a million customers in New York, had negotiated with state authorities, even proposing a 10% tax, but to no avail. He added that New Yorkers earned nearly $200 million in 2026 through Kalshi, a figure he said would be impossible with traditional gambling platforms.
The lawsuit represents a significant regulatory clash between state and federal authority over prediction markets. As the case unfolds, it could set a precedent for how these platforms are treated under U.S. law.