Kalsi bets on New York!
Despite being sued by Gov. Kathy Hochul and the state attorney general, Kalshey donated up to $3 million to the nonprofit Housing Works to expand health care for New Yorkers.
The multi-year partnership will be the largest single donor gift in Housing Works’ 36-year history and will expand access to health care, job training and community services for thousands of New Yorkers.
The massive donation will be focused on Housing Works’ flagship clinic in East Harlem, the 125th Street Health Center, according to Kalshi, a New York City prediction market platform.
The program will allow the center to serve more patients, help provide continuity of care to New Yorkers at risk of losing insurance coverage, and expand comprehensive services regardless of a patient’s ability to pay.
More than 500,000 New York City residents lack health insurance — a number that is expected to surge in the next 18 months, according to Kalshi and Housing Works, a nonprofit founded during the AIDS crisis.
“This is the largest charitable donation in Housing Works’ history,” Housing Works President Matthew Bernardo said in a statement. “We are proud that at a time when the need for health care, workforce opportunities and support services continues to grow, a New York-based company has chosen to invest in New York communities.”
“This partnership will help protect and expand services that thousands of New Yorkers rely on each year.”
The multimillion-dollar donation will also expand Housing Works’ “Ready for Work” career and job training programs, designed to help participants develop critical skills to find stable employment.
Additionally, the partnership will transform the nonprofit’s neighborhood retail store into a community outreach center.
Governor Hochul and Attorney General Letitia James filed a lawsuit against Kalshey last month, alleging that a federally regulated prediction market operator ran an illegal gambling operation in the Empire State.
The lawsuit alleges that Kalshi has been making illegal gambling products available to New Yorkers, including those ages 18 to 20, without a state license, exposing consumers to financial harm while evading tax and regulatory obligations imposed on licensed sportsbooks.
The lawsuit comes as Kalshi presented Hochul with a proposal that the gaming company could raise about $10 billion for New York over the next five years.
The company, which allows users to place bets on real events such as elections, economic news and sports, argued that its proposed tax structure should not reflect the 51% tax on online sports betting because the two companies operate differently.
Kalsi said online sportsbooks make money when customers lose bets, while prediction markets operate as exchanges and generate revenue through fees.
Kalshi predicts that capital gains tax revenue from prediction market traders will match or exceed the taxes levied by online sportsbooks.
“We founded Kalshi in New York, a city that has given us so much,” said Kalshi CEO Tarek Mansour.
“Our first office was right next to the Housing Works bookstore and café in SoHo, and over the years we’ve learned that Housing Works provides health care, housing and job training to New Yorkers in need,” Mansour added.
“These are our neighbors. This is a city where two people can start a company in a small apartment, and it has to be a city where everyone has a fair shot. Being the financial capital of the world and taking care of people are not mutually exclusive. New York can and will do both, and we intend to do our part.”