1 hour ago
New York Attorney General Letitia James speaks to the media, after she attended a hearing and pleaded not guilty to charges that she defrauded her mortgage lender, outside the U.S. District Court for the Eastern District of Virginia, in Norfolk, Virginia, U.S., Oct. 24, 2025.
Jonathan Ernst | Reuters
Days before Super Bowl 60, New York Attorney General Letitia James has a message for consumers: Be careful about placing trades on prediction markets.
"New Yorkers need to know the significant risks with unregulated prediction markets," James said in a statement Monday. "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."
Prediction platforms like Kalshi and Polymarket are expected to generate billions of dollars in trading volume around the Super Bowl. The platforms offer event contracts that "masquerade" as bets, James said in the statement.
Consumers can make trades on game events — similar to online sportsbooks like DraftKings or FanDuel — as well as on predetermined outcomes, such as which companies will advertise during the Super Bowl, an issue CNBC Sport reported on last week.
Get the CNBC Sport newsletter directly to your inbox
The CNBC Sport newsletter with Alex Sherman brings you the biggest news and exclusive interviews from the worlds of sports business and media, delivered weekly to your inbox.
James warned there are concerns about the nascent prediction market industry, including "upholding prohibitions against insider betting and requiring regulatory review to ensure the financial stability and integrity of gambling operators."
Disclosure: CNBC has a commercial relationship with Kalshi.
This is a developing story. Please check back for updates.
