Kalshi is betting on New York!
Kalshi is donating a whopping $3 million to nonprofit Housing Works to expand healthcare for New Yorkers, despite being sued by Gov. Kathy Hochul and the state’s attorney general.
The multi-year partnership will be the largest single-donor gift in Housing Works’ 36-year history and will expand access to healthcare, job training and community services for thousands of New Yorkers.
The massive donation will center on Housing Works’ flagship clinic in East Harlem, the 125th Street Health Center, according to Kalshi, a prediction market platform based in New York City.
The project will allow the center to serve more patients, help continuity of care for New Yorkers at risk of losing coverage, and expand comprehensive services regardless of patients’ ability to pay.
More than 500,000 New York City residents are without health insurance — That number is expected to surge in the next 18 months, according to Kalshi and Housing Works, a nonprofit launched during the AIDS crisis.
“This is the largest charitable gift in Housing Works’ history. We are proud that a New York-based company has chosen to invest in New York communities at a moment when the need for healthcare, workforce opportunities, and supportive services continues to grow,” Matthew Bernardo, President of Housing Works, said in a statement.
“This partnership will help protect and expand services that thousands of New Yorkers rely on every year.”
The multi-million dollar donation will also expand Housing Works’ “Ready for Work” vocational and job-training program, designed to help participants build key skills to find stable employment.
Additionally, the partnership is slated to turn the nonprofit’s neighborhood retail locations into community outreach hubs.
Gov. Hochul and Attorney General Letitia James filed a lawsuit against Kalshi last month, accusing the federally regulated prediction market operator of running an illegal gambling business in the Empire State.
The lawsuit claimed Kalshi has been offering New Yorkers, including those aged 18 to 20, illegal gambling products without a state license, exposing consumers to financial harm while avoiding taxes and regulatory obligations imposed on licensed sportsbooks.
The suit comes as Kalshi has put a proposal before Hochul, claiming the betting company could raise roughly $10 billion for New York over the next five years.
The company — which lets users wager on real events like elections, economic information and sports — argued its proposed tax structure should not mirror the 51% tax on online sportsbooks, since the two businesses operate differently.
Online sportsbooks make money when customers lose bets, while prediction markets operate as exchanges and generate revenue through fees, according to Kalshi.
Kalshi forecasts that capital-gains tax revenue from prediction market traders would match, or exceed, the taxes collected from online sportsbooks.
“We built Kalshi in New York, and this city has given us so much,” said Kalshi CEO Tarek Mansour.
“Our first office was right next to the Housing Works Bookstore Cafe in SoHo, and over the years we learned that Housing Works provides healthcare, housing, and job training for New Yorkers who need it,” Mansour added.
“These are our neighbors. This is a city where two people in a small apartment can build a company, and it must be a city where everyone gets a fair shot. Being the financial capital of the world and taking care of your people aren’t mutually exclusive. New York can and will do both, and we intend to do our part.”
