New York Attorney General Letitia James issued a consumer alert to warn residents of the potential harms regarding “unreliable and unsafe” prediction markets and unlicensed sports wagering.
“Ahead of the Super Bowl, New Yorkers need to know the significant risks with unregulated prediction markets,” James said.
“It’s crystal clear: so-called prediction markets do not have the same consumer protections as regulated platforms. I urge all New Yorkers to be cautious of these platforms to protect their money.”
Within the alert, James also stated prediction markets in New York “operate without consumer protection and without the supervision of the New York Gaming Commission.”
The consumer alert addressed the conduct, advertisement and promotion of unlicensed sports wagering, which violate New York’s gambling laws and may be subject to civil and criminal liability.
“Prediction markets may appear as modern, high-tech platforms for speculation or ‘forecasting,’ but in practice, many operate as unregulated gambling without the basic protections New York consumers both deserve and expect from properly licensed operators,” the alert said.
“New Yorkers deserve to know that a platform is legitimate, regulated and operating under consumer safeguards, before ever placing a bet.
In October 2025, Kalshi filed a lawsuit against the New York State Gaming Commission, alleging the regulator overstepped its authority after threatening the predictions marketplace with criminal action for operating in the Empire State.
Kalshi stated any regulation conducted by the Commodity Futures Trading Commission "preempts" that of state authorities due to its contracts being structured as binary options, and believes potential threats may harm its operations.
The New York State Gaming Commission granted final approval for three casino licenses in New York City on December 16, clearing the way for developments in the Bronx and Queens following a decisive vote
