Kalshi CEO says New York lawsuit targets broader prediction market model

Kalshi CEO Tarek Mansour argued New York state’s lawsuit against the prediction market platform is unjustified and targets the broader event-contract industry rather than sports betting, CNBC reported. In an interview with CNBC, Mansour said, "the lawsuit is not about sports. It is targeting all prediction markets and their business model." He added that the complaint could be copied and filed against Nasdaq as well, arguing Kalshi operates in a similar way to the exchange. Mansour also likened Kalshi’s regulatory and legal challenges to past conflicts involving Uber and Airbnb, noting the platform is formally registered with the Commodity Futures Trading Commission as a designated contract market, or DCM, but is still facing regulation from multiple state governments. He said the key issue is the prediction market industry itself, describing it as an innovative sector that disrupts the existing order, is growing rapidly, and is seeing strong consumer adoption. Mansour added that established industries have repeatedly responded in the same way, citing the taxi industry’s clash with Uber and the hotel industry’s clash with Airbnb. He said the strategy is simple: file lawsuits first, then try to change the law, and only compete and innovate after realizing consumer demand does not disappear.