Kalshi Ramps Up NY Lobbying as Lawmakers Consider Restrictions

Kalshi Inc. has ramped up its lobbying activity as New York lawmakers push for new licensing requirements on the prediction market sector, especially as their users increasingly flock to the online trading sites.

New York lawmakers have sponsored at least three bills that would establish a regulatory framework and set age guidelines on the platforms, which allow users to buy contracts that predict outcomes of future events, such as political speeches or sports games.

The legislative action spurred Kalshi to register with the state lobbying commission for the first time on Feb. 21, signing a $10,000-per-month contract with the Albany-based firm Brown Weinraub. The company expects to lobby on finance, insurance and financial services, plus the bills on prediction markets, according to lobbying filings. Polymarket, another major platform, has not registered to lobby in the state.

Prediction markets have become an increasingly prevalent issue for state lawmakers as they become popular among consumers nationwide, said Chris Cylke, a senior vice president with the American Gaming Association, which represents casinos, sports betting providers and other legal gambling platforms. The platforms are not regulated as sports betting providers, which are typically licensed through state regulators where such activity is legal.

New York is the top sports betting market in the US, generating $2.5 billion in state revenue in 2025, according to the American Gaming Association. States benefit from the tax revenue generated by such gaming platforms, calculated by the association to reach more than $18 billion across the US in 2025.

State lawmakers in Hawaii, Illinois, New Jersey and Kentucky are also considering bills that would put up guardrails on the platforms, and several states are involved in litigation with Kalshi over its alleged circumvention of state-level gambling laws.

“In the absence of clear leadership from our federal partners, states have to step up,” said state Sen. Jeremy Cooney, who authored a bill that would establish a licensing structure for prediction markets. “We have to act with some level of urgency.”

Kalshi has also bolstered its federal lobbying presence, retaining at least eight K Street firms since 2021.

A spokesperson for Kalshi declined to comment on its lobbying activity in New York. Polymarket did not respond to requests for comment.

The platforms have generated interest from the influential Partnership for New York City, which represents corporations and investment firms in the city. President Steven Fulop said in an interview that he reached out this week to executives from the New York City-based Kalshi and Polymarket to gauge whether they would join the group, given the platforms’ “growing presence.”

‘Existential Questions’

Cooney’s bill (S.B. 8889) would give the state Division of Financial Services oversight of the platforms. It would compel those businesses to maintain financial integrity and consumer protection standards similar to other companies the agency regulates.

Cooney said he is approaching the issue from a consumer protection lens and added that his bill is “not a money grab” for the state, though he said he wanted licensing fees levied on the platforms.

Another bill from Assemblymember Clyde Vanel (D), chair of the Assembly Banks Committee, would restrict platforms to users over 21 years old and would ban trading on catastrophic events, politics, deaths, and sports.

Vanel spoke with lawyers in New York City Mayor Zohran Mamdani’s administration to gauge their interest on his bill (A.B. 9251) and other regulatory action on prediction markets earlier this month, he said.

A third bill (A.B. 9635) would restrict government employees, lawmakers and legislative staff from trading on the platforms using information they acquire through their positions.

Cylke, with the American Gaming Association, said the measures that lawmakers are considering pose “existential questions” for the prediction market platforms. His organization represents gaming platforms that are subject to rules that don’t currently apply to prediction markets.

For states, in the absence of regulation, Cylke said, “you’re losing revenue, you’re losing control over consumer protections, and your ability to control your own destiny when it comes to gaming.”