CONNECT WITH US
Tech

Tech

Kalshi Says It’s Not Like Predatory Sportsbooks. NY’s AG Wants Execs to Prove It.

Gizmodo - Tech logo

Published on

Add as a preferred source on Google
Kalshi Says It’s Not Like Predatory Sportsbooks. NY’s AG Wants Execs to Prove It.

Prediction markets like Kalshi and Polymarket often pitch themselves as a cleaner alternative to traditional sportsbooks, matching buyers and sellers in a peer-to-peer marketplace rather than acting as the casino house that profits when customers lose. But New York Attorney General Letitia James is now pressing the company to show that distinction is more than marketing language.

In a verified petition filed in New York County Supreme Court, James seeks to enforce a September 25th subpoena issued as part of a civil investigation into potential fraud and deceptive advertising in the prediction market industry. According to the filing, Kalshi has produced zero documents to date. The investigation examines marketing materials, payments to influencers on platforms like Discord and TikTok, and the role of Kalshi’s own affiliated trading arm and third-party market makers on the platform. It sits separate from the state’s earlier lawsuit alleging Kalshi operates an illegal unlicensed gambling operation that allows users under 21, the minimum age for mobile sports betting in New York. The state also sued Polymarket in September for operating as an unlicensed gambling operation.

Tarek Mansour has for days now said that what sets him apart from casinos is that he doesn't win if you lose

But the NY AG now says that actually the other side of your parlay bet is literally Kalshi Trading! https://t.co/uChs1Sm1Rb

The petition raises concerns regarding Kalshi’s “combo” products, which effectively act as the platform’s version of the multi-leg parlays long offered and heavily promoted by sportsbooks. According to the filing, 100% of those combo bets have either Kalshi Trading, which is the company’s own affiliated market-making entity, or one of Kalshi’s approved professional market makers on the other side of the trade, not another ordinary retail user.


Source link
Related Topics:Tech

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.