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Case Law

New York Attorney General Sues Kalshi Over Unlicensed Prediction Market

New York sues Kalshi, claiming prediction contracts violate state gambling laws. The New York Attorney General's office has filed a 32-page complaint in the New York County Supreme Court against Kalshi, accusing the platform of running an unlicensed wagering operation and failing to prevent underage betting. The lawsuit claims that Kalshi's prediction markets are essentially gambling platforms, which are subject to state regulations. The legal significance of this matter lies in its potential impact on the regulation of prediction markets across the United States. Several states have already taken steps to restrict Kalshi's activity, and New York's lawsuit may set a precedent for other jurisdictions to follow. The outcome of this case will likely influence the development of prediction market regulations nationwide. The relevant statutes involved in this matter include the New York Penal Law and the New York Racing, Pari-Mutuel Wagering and Breeding Law. These laws govern gambling activities within the state and impose licensing requirements on operators. The court hierarchy involved is the New York County Supreme Court, which will hear the case. The key parties involved in this matter are Kalshi, the Attorney General's office, and potentially other states that have already taken action against the platform. Practitioners should monitor the outcome of this case, as it may set a precedent for the regulation of prediction markets across the United States.

31 Jul
United States
United States
Legislation

New Jersey Bars Lawyers From Sex with Clients: Ethics Rule Change

The New Jersey Supreme Court has adopted a new ethics rule that explicitly prohibits lawyers from having sex with clients, effective September 1, 2026. This development is significant for practitioners in New Jersey as it clarifies the boundaries of professional conduct and provides clear guidance on what constitutes an impermissible relationship. The rule applies to any attorney who assists in representing the client, but does not automatically extend to other lawyers in the same law firm who have no role in the client's case. The relevant statutes and regulations involved are the New Jersey Rules of Professional Conduct, which are part of the state's code of professional responsibility. The rule is also influenced by the American Bar Association's Model Rules of Professional Conduct, which provide a framework for states to adopt their own rules. The New Jersey Supreme Court has taken a proactive approach in addressing this issue, joining nine other states that have explicit rules prohibiting lawyers from having sex with clients. The key parties involved are the New Jersey Supreme Court, which adopted the new rule, and the New Jersey State Bar Association, which may provide guidance to its members on the implications of the rule. Practitioners should be aware of this development and take steps to ensure compliance with the new rule, particularly in cases where they have preexisting relationships with clients or colleagues. Practitioner takeaway: Attorneys in New Jersey should review their firm's policies and procedures to ensure compliance with the new rule, and consider seeking guidance from the state bar association on how to navigate any potential conflicts of interest.

27 Jul