Kalshi Intensifies Lobbying Efforts in New York in Response to 3 New Bills

Kalshi has ramped up its lobbying efforts in New York as lawmakers consider several bills that would place prediction markets under state oversight. The federally regulated exchange registered to lobby in New York on February 21. State filings show Kalshi signed a $10,000-per-month agreement with the Albany firm Brown Weinraub to monitor and engage with proposed legislation affecting prediction markets.

Several New Bills Propose Increased State Oversight

The timing of this development is no coincidence. At least three proposals are circulating in the Legislature, all aiming to establish regulations around prediction markets, which have gained traction among retail customers. Unlike sportsbooks, these platforms operate under federal oversight and claim that they do not need licenses from the New York State Gaming Commission.

One measure, sponsored by state Sen. Jeremy Cooney, would give the New York State Department of Financial Services control over market prediction activities. The bill would require operators to meet standards for capital reserves and consumer protections similar to those of other financial firms regulated by the agency. Cooney has described the effort as focused on accountability rather than revenue generation.

Another proposal from assemblymember Clyde Vanel would limit access to users 21 and older and bar trading on topics such as political races, deaths, catastrophic events, and sports contests. A third bill aims to prohibit state employees and lawmakers from using information obtained through their official roles to trade, addressing rising concerns about insider trading on prediction platforms.

Prediction Markets Remain a Contentious Topic

Kalshi’s efforts likely aim to influence how New York treats prediction markets. Gambling industry stakeholders have also grown increasingly concerned, arguing that prediction platforms are currently not bound by state rules covering age verification, advertising standards, and problem gambling mitigation. Meanwhile, Kalshi maintains that its contracts fall under exclusive federal jurisdiction.

The platform has also invested considerable efforts in bolstering its public image. In February, Kalshi partnered with Manhattan’s Westside Market to conduct a three-hour grocery giveaway. The marketing stunt resulted in a line that extended around the entire block as customers could get up to $50 in free groceries. Kalshi pitched this promotion as a community event to introduce New Yorkers to the platform.
Skeptics remain unconvinced. New York Attorney General Letitia James recently issued public warnings about online prediction markets, contending that such platforms lack certain consumer safeguards. Her office warned that companies that promote or run unauthorized sports betting operations face potential civil and criminal repercussions, depending on how their activities are classified.