Kalshi Sues NY Gambling Regulator Alleging Overreach (Correct)

Predictions marketplace Kalshi Inc. sued New York’s gaming commission, saying the state agency is overstepping its authority by attempting to regulate sports-betting operations that fall exclusively under federal jurisdiction.

In a lawsuit filed Monday in Manhattan US District Court, Kalshi said that it’s operating legally in New York under federal law. Kalshi accused state regulators of threatening the company over its so-called event contracts and asked a federal judge to immediately block the state from any enforcement action.

“Defendants have implicitly threatened Kalshi with criminal action and explicitly threatened Kalshi with civil penalties, including fines, unless it shuts down these ...