Kalshi CEO Tarek Mansour is intensifying his company's dispute with New York, stating that officials have rejected a tax proposal that he estimates could bring the state nearly $10 billion over five years.
Mansour made the comments on CNBC's Squawk Box, where he said Kalshi had tried to address concerns about tax revenue and consumer protections instead of leaving the state. He claimed the company proposed a framework that would establish "some sort of taxation on the prediction market industry," which could raise "close to $10 billion over the next five years." This figure has not been independently verified.
Mansour stated that the nearly $10 billion in tax revenue could help fund schools and healthcare. He accused Governor Kathy Hochul of choosing "special interests" over New Yorkers by not accepting the proposal.
Hochul responded that the potential tax revenue would not change the state's position on Kalshi. She wrote, "Kalshi can promise 100% of its revenue. 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 company is running an illegal gambling business without state registration. 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.
Kalshi CEO Mansour also claimed that New Yorkers using the platform have collectively made money this year. He stated, "They have made over $200 million because New Yorkers are smart and they're doing a good job." However, these figures have not been independently verified.
The larger fight remains one of regulatory authority. Kalshi says federal oversight prevents states from treating its contracts as illegal gambling, while New York says federal registration does not allow companies to bypass state gambling protections.
Kalshi lost an important round in July when a U.S. District Judge denied its request for a preliminary injunction against New York enforcement. Mansour compared Kalshi's regulatory battles with earlier fights involving Uber and Airbnb, stating the company remains willing to discuss consumer protections and reasonable taxation rather than leave New York.
