Kalshi CEO Tarek Mansour is escalating his company’s fight with New York, saying officials turned down a tax proposal that he estimates could bring the state nearly $10 billion over five years.
Speaking Monday (August 3) on CNBC’s Squawk Box, Mansour said the prediction-market operator had tried to address concerns about tax revenue and consumer protections rather than leave New York.
“We put out a proposal in front of the governor” that would establish “some sort of taxation on the prediction market industry,” Mansour said, according to a transcript of the interview provided for this article. He said the proposal could raise “close to $10 billion over the next five years.”
That nearly $10 billion figure comes from Kalshi and has not been independently substantiated. Mansour said the money could help fund schools and health care.
Governor Kathy Hochul made clear that potential tax revenue would not change the state’s position.
“Kalshi can promise 100% of its revenue,” Hochul wrote. “You can’t buy yourself an exemption from New York law. If an illegal bookie offers the state a share of their profits, we’ll still shut them down.”
New York sued Kalshi on July 31, alleging the federally regulated exchange is running an illegal gambling business without state registration. The state wants Kalshi’s New York operations stopped and is seeking penalties and other financial relief.
Kalshi argues its event contracts are federally regulated financial derivatives overseen by the Commodity Futures Trading Commission, not ordinary wagers governed by individual state gambling laws. The CFTC has backed that jurisdictional argument, suing New York in April and asserting federal authority over event contracts.
New York and Kalshi clash over tax, customer gains and regulation
Mansour also argued that New Yorkers using Kalshi have collectively made money this year.
Asked about their combined profits and losses, Mansour said: “They made $200 million. Plus $200 million.”
“They have made over $200 million because New Yorkers are smart and they’re doing a good job,” Mansour said. He also claimed sportsbook customers were down $200 million over the same period. Those figures have not been independently verified.
Mansour defended prediction markets against concerns that wealthy traders could manipulate political-market prices, arguing other participants would have an incentive to trade against distorted prices.
He pointed to Washington Post analysis of 2026 primary-election markets. The newspaper found that outcomes generally tracked the probabilities markets assigned, although experts cautioned that those probabilities should not be treated as certainty.
The larger fight remains one of regulatory authority. Kalshi says federal oversight prevents states from treating its contracts as illegal gambling. New York says federal registration does not allow companies to bypass state gambling protections.
Kalshi lost an important round July 7 when U.S. District Judge Analisa Torres denied its request for a preliminary injunction against New York enforcement. Hochul and Attorney General Letitia James responded: “New York’s gambling laws are designed to protect consumers. Kalshi tried to ignore them.”
Mansour compared Kalshi’s regulatory battles with earlier fights involving Uber and Airbnb, saying the company remains willing to discuss consumer protections and reasonable taxation rather than leave New York.
Featured image: CNBC
The post Kalshi CEO says New York rejected $10B tax proposal amid crackdown appeared first on ReadWrite.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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