Kalshi, the New York-based prediction market platform currently being sued by Gov. Kathy Hochul’s administration, announced a $3 million donation to Housing Works, the nonprofit’s largest single-donor gift in its 36-year history.
The multi-year partnership will fund expanded healthcare, job training and community services for New Yorkers, with a focus on Housing Works’ flagship 125th Street Health Center in East Harlem. More than 500,000 New York City residents currently lack health insurance, a number Kalshi and Housing Works say is expected to rise over the next 18 months.
“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,” said Matthew Bernardo, President of Housing Works. “This partnership will help protect and expand services that thousands of New Yorkers rely on every year.”
The money will also expand the nonprofit’s “Ready for Work” vocational training program and convert Housing Works’ retail locations into community outreach hubs.
A Donation Amid a Legal Fight
The gift comes one month after Hochul and Attorney General Letitia James sued Kalshi, accusing the company of running an illegal gambling operation in New York. The lawsuit alleges Kalshi offered unlicensed gambling products, including to users aged 18 to 20, while dodging the taxes and regulatory requirements imposed on licensed sportsbooks.
Kalshi disputes that characterization. The company has separately pitched Hochul on a proposal it says could generate roughly $10 billion for New York over five years, arguing its business model differs fundamentally from sportsbooks. Where sportsbooks profit when bettors lose, Kalshi says it operates as an exchange, collecting fees rather than taking the other side of wagers. The company contends its proposed tax rate should not match the 51% levy applied to online sportsbooks, and forecasts that capital-gains tax revenue from its traders would match or exceed what the state collects from sportsbook taxes.
Kalshi CEO Tarek Mansour tied the donation directly to the company’s roots in the city.
“We built Kalshi in New York, and this city has given us so much. 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. 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.”
