Kalshi CEO Tarek Mansour on New York lawsuit: We operate under federal rules

Summary

Kalshi CEO Tarek Mansour discusses the New York State lawsuit against the prediction market platform, framing it as a protective move by legacy sports gambling incumbents. He argues that prediction markets are growing rapidly, offer better consumer outcomes, and could raise significant tax revenue for the state, contrasting the model with sportsbooks like DraftKings. The conversation highlights the federal vs. state regulatory tension and the disruptive potential of prediction markets.

• New York State sued Kalshi, alleging its prediction markets are gambling.
• Mansour claims the lawsuit targets all prediction markets and could apply to any exchange like Nasdaq.
• He compares the situation to Uber battling incumbents, with a playbook of litigate, legislate, then compete.
• Kalshi operates under CFTC federal regulation, not under state gambling rules.
• Mansour says New Yorkers have made $200 million on Kalshi, unlike sportsbooks where the house always wins.
• Kalshi proposed a tax plan that could raise $10 billion over five years but received no response.
• He suggests DraftKings and sports gambling benefit from the lawsuit, protecting an inferior business model.
• The debate centers on whether prediction markets should be regulated as gambling or as financial exchanges.