Kalshi Says It's Not Running a Casino, Responds to NY Attorney General

Summary

Kalshi's head of enforcement, Robert DeNault, defends the prediction market against a New York State lawsuit, arguing it is a federally regulated exchange, not a casino. He warns that the Attorney General's legal theory could threaten other platforms like Robinhood and Coinbase, and discusses Kalshi's surveillance and enforcement efforts, including the George Santos settlement.

• Kalshi sued by NY AG for allegedly running an illegal gambling operation.
• DeNault argues Kalshi is a CFTC-regulated exchange, not a casino or sportsbook.
• He says the AG's broad logic could affect all federally licensed exchanges like NYSE and Nasdaq.
• Specific concern raised that lawsuit language could be applied to Robinhood, Coinbase, and other retail trading platforms.
• Kalshi runs open marketplaces with price discovery between counterparties, not against a house.
• Platform uses robust surveillance and enforcement, with 150-250 material investigations per quarter.
• George Santos settled allegations of manipulating a wager on Kalshi for over $35,000.
• Prediction markets are increasingly used as information resources; 75% of visitors only view data.