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New York sues Kalshi, alleges prediction market is illegal gambling

In this photo illustration, a Kalshi logo is seen displayed on a smartphone on the top of a laptop. (Photo Illustration by Omar Marques/SOPA Images/LightRocket via Getty Images)

(NEW YORK) — New York sued Kalshi on Friday, alleging its prediction market is nothing more than illegal, unlicensed gambling, in large part because outcomes depend more on chance than skill.

The lawsuit does not seek to close down Kalshi, but, if successful, it could dent its ability to operate.

Kalshi insists its event contracts are federally regulated derivatives outside the scope of state gaming laws but New York Attorney General Letitia James’ lawsuit said Kalshi is merely seeking “to avoid the legal and financial consequences of New York’s close regulation of gambling by offering what is quintessentially wagering.”

“It’s sad to see this type of political theater from the leadership in our own state. States can’t just shut down a federally licensed exchange,” Elisabeth Diana, Kalshi’s Head of Communications told ABC News. “This would also hurt New Yorkers, who would be driven offshore. We love New York, we love New Yorkers, and New Yorkers love our product.”

The lawsuit alleged Kalshi violates state laws prohibiting wagering on games involving New York college teams and all sports betting for those under 21.

The Commodity Futures Trading Commission, which has said prediction markets are its exclusive purview, filed for a temporary restraining order to halt the state’s lawsuit.

“New York’s gambling laws protect children from underage betting and help combat gambling addiction,” James said in a statement. “No matter what they call themselves, prediction makers like Kalshi are gambling platforms, plain and simple.”

The lawsuit sought a court order demanding Kalshi submit to state regulators and taxes, to forfeit illegal profits and pay restitution to users nationwide, a possible penalty that could cost Kalshi an estimated $36 billion, according to a statement of facts accompanying the lawsuit.

“Kalshi has chosen to ignore New York’s gambling laws, which exist to protect consumers, prevent problematic gambling, deliver funding for critical public services and ensure that every company plays by the same rules,” Governor Kathy Hochul said.

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Northshore teen is raising awareness after her battle with mold-related illness

By CNN
Click here for updates on this story    MANDEVILLE, La. (WDSU) -- A new study shows invasive mold infections may be more common than experts realized. The findings by the U.S. Centers for Disease Control and Prevention comes from an attempt to better gauge how common these kinds of illnesses are. The government does not require doctors to report the illnesses according to the report. The researchers detected about 450 cases in Atlanta-area hospitals over five years. About a third of the patients died in the hospital. The researchers found that hospitals can expect to see 3 to 5 cases per year for every 100 inpatient beds. Most patients had impaired immune systems.A Mandeville teenager has been struggling with mold-related illness and is sharing her story to raise awareness. 19-year-old Elaina Faler started getting sick 4 years ago.Her symptoms included fatigue, brain fog, fever, rashes and difficulty digesting food.But every time she went to the hospital, she says doctors told her nothing was wrong."They couldn't figure it out and it was so frustrating getting told over and over that I'm a perfect patient, that it might be my anxiety or my G.I.," Elaina said.Until one day her father Chris Faler got a hunch to check out the vent at their Covington house which was only about 8 years old, and he says he found mold."I couldn't sleep, I was bothered, so I took my light and climbed to the vent where the air comes out and peered in with my light and I saw all circles. Yellow, black, white, and I went 'Oh my gosh this is it, it's in our house,'" Faler said.So, he called an environmental professional to confirm the mold in their home and immediately moved their family out.They also found Dr. Andreas Grossgold in Florida who integrates holistic medicine into his practice.Dr. Grossgold is a board-certified physician trained in both pediatrics and internal medicine, with advanced specialization in Integrative Medicine and Environmental Toxicity."What we found later is that it was not just mold but her reactivity, the reaction her body was having towards that. She has something called mass cell disease or mass cell syndrome," Dr. Grossgold said.Chris says Elaina had mast cell activation syndrome. It's an autoimmune disease that's triggered by environmental factors and in this case, he says it was mold that triggered it.Chris said he believes he was also exposed to mold, but his immune system was able to fight it.Elaina is now going through treatments at the clinic in Florida and as she continues to heal, she's looking forward to her sophomore year at University of Alabama as a healthy student.Elaina and her family want to raise awareness and educate other families on the dangers of mold. Chris is warning families to check their house for potential mold and get an expert to inspect your home if necessary."In Louisiana you're going to have heat and coolness coming out of the vents and where they meet, that can form mildew and mold over time and then become toxic and get released, and we breathe that in," said Chris.Elaina's mother Candace is grateful for friends and loved ones who offered support and prayers throughout their difficult journey."That's what it takes a village, and sometimes when you don't know the next move, you rely on God, you rely on family and friends and they were there. They helped us get where we need to be," Candace said.Chris says their health insurance does not cover expenses for Elaina's treatments. Please note: This story was provided to CNN Wire by an affiliate and does not contain original CNN reporting. This content carries a strict local market embargo. If you share the same market as the contributor of this article, you may not use it on any platform.
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