Prediction Markets vs State Laws: A Tale of Federal Inaction A recent court ruling has sent shockwaves through the prediction market industry, with Kalshi facing opposition from New York's Governor Kathy Hochul and Attorney General Letitia James.
At its core, this is a power struggle between Washington D. C. and individual states, which have been left to set their own laws in the absence of federal regulation.
New York has been vocal in its opposition to unregulated prediction markets, viewing them as a threat to consumers.