Kalshi Under State Scrutiny Over NYC Mayor Race Odds

The New York State Gaming Commission has moved to shut down Kalshi, an online prediction market that allows traders to speculate on political and event-based outcomes. Regulators allege that Kalshi is operating as an unlicensed gambling platform in connection with contracts based on the New York City mayoral race between Zohran Mamdani and Andrew Cuomo.

According to the Commission, Kalshi has processed more than $63 million in trades related to the mayoral contest, prompting state authorities to intervene. In an official letter from Oct. 24, the regulator ordered Kalshi to cease offering prediction market contracts tied to election and sports results, asserting that the platform's activities violate state gambling laws. 

The directive from Executive Director Robert Williams demanded that the company "cease and desist from illegally operating" or offering any unlicensed New York sports betting services.

Kalshi has filed a lawsuit against the order, claiming that its platform is not gambling and is instead overseen by the federal Commodity Futures Trading Commission. The company states that its contracts are similar to futures markets in that they are tradable commodities.

Advocates for election integrity have warned that betting markets tied to democratic contests could erode public trust. Susan Lerner of Common Cause New York said that such markets "devalue voters' choices" and risk normalizing wagers on political outcomes. 

Kalshi's appeal has temporarily blocked the enforcement of the state order until late November, allowing the exchange to continue operating while the case proceeds.

Kalshi removes sportsbook references from job listing

As regulatory pressure mounts, Kalshi has also taken steps to distance itself from gambling terminology in its public materials. The company quietly edited an open job listing for a "sports operations" position after social media users pointed out multiple references to sportsbooks, which appeared inconsistent with its claims that the platform is distinct from gambling operations.

Kalshi has maintained that it offers event trading through an exchange model, which it says differs fundamentally from traditional sportsbooks like DraftKings or FanDuel. However, archived versions of the posting showed the company had previously sought candidates with "extensive experience with sportsbooks," as well as familiarity with sportsbook-specific procedures and settlement scenarios.

After receiving a lot of public attention, Kalshi changed the wording to remove direct mentions of sportsbooks and instead focus on "sports market nuances." It also removed references suggesting that experience trading on sportsbooks was better, leaving only experience with Kalshi, daily fantasy sports, or prediction markets.

Some references to the new wording are still on LinkedIn, but Kalshi's website no longer has them. The job listing has been up for more than two months and offers a salary range of $80,000 to $130,000 per year, along with stock options and other benefits.