Nasdaq Analogy in $36 Billion Massive Lawsuit: “They Could Do the Same to Them”
Kalshi CEO Tarek Mansour responded to the $36 billion lawsuit filed by New York State against the platform, comparing the company’s business model to the exchange giant Nasdaq.
Prediction market platform Kalshi is facing a massive damages lawsuit after being accused of operating illegal gambling by New York Attorney General Letitia James. The company’s CEO, Tarek Mansour, denied these allegations in an interview, stating that the platform operates more like a modern financial exchange than a casino. Mansour highlighted the injustice of the legal process by claiming that the content of the lawsuit could be copied and used against the Nasdaq stock exchange as well.
Kalshi offers a structure that allows users to take opposing positions on whether specific events will occur. Mansour emphasized that, unlike traditional betting sites, the platform does not profit from user losses and only charges a 1% transaction fee. The company, which has reached a $22 billion valuation, defines itself as a broad prediction market offering contracts on everything from elections to weather. However, data shows that more than 70% of the trading volume on the platform is sports-focused.
The Uber and Airbnb Era in Prediction Markets
Mansour likened the legal hurdles they face to the taxi and hotel lobby battles experienced by Uber and Airbnb in the past. Stating that an innovative industry is threatening the established order, the CEO noted that this process frequently occurs during technological transformations. According to Mansour, major betting companies and lobbies are using the judicial system to block such disruptive technologies that could shake their business models.
Stating that New Yorkers earned more than $200 million on the platform this year, Mansour argued that the tax proposal they submitted to state authorities could generate $10 billion in revenue over five years. The CEO added that consumer demand for these next-generation markets cannot be destroyed and that traditional structures will eventually have to keep up with this innovation.