New York wants to treat Kalshi like a sportsbook to capture high net gaming revenue taxes, eliminate an unfair tax advantage over licensed state operators, and fund public services.
Revenue Disparities and State Budgets
High Tax Rates: Licensed mobile sportsbooks in New York face steep tax rates on their gross gaming revenues (up to 51%), driving massive state income (over $1 billion in 2025).
Low Corporate Rates: As a federally regulated financial exchange under the CFTC, Kalshi currently pays standard corporate income tax rates strictly on its transaction fees rather than high gaming levies. [
Public Funding: New York argues that classifying Kalshi as gambling ensures it contributes proportionally to public schools, youth programs, and addiction services.
Regulatory and Competitive Level Playing Field Same Rules:
State leaders argue that event and sports contracts mimic traditional wagering and should not bypass local licensing fees or consumer protection laws. Age Limits: Unlicensed status lets Kalshi accept users aged 18–20, whereas New York mobile sportsbooks strictly enforce a 21+ age limit.
https://www.forbes.com/sites/nathangoldman/2026/07/31/why-new-york-wants-kalshi-taxed-like-a-sportsbook/D