Kalshi is donating $3 million to nonprofit Housing Works to expand healthcare services for New Yorkers, despite facing a lawsuit from Governor Kathy Hochul and the state’s attorney general. This donation marks the largest single-donor gift in Housing Works’ 36-year history and aims to enhance access to healthcare, job training, and community services for thousands of residents. The donation will focus on Housing Works’ flagship clinic in East Harlem, the 125th Street Health Center, allowing it to serve more patients and provide comprehensive services regardless of patients’ ability to pay.
Currently, over 500,000 New York City residents lack health insurance, a number projected to increase in the next 18 months, according to Kalshi and Housing Works, which was established during the AIDS crisis. Matthew Bernardo, President of Housing Works, stated, "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."
The donation will also support Housing Works’ “Ready for Work” vocational and job-training program, which helps participants develop skills for stable employment. Additionally, the partnership will convert the nonprofit’s retail locations into community outreach hubs.
Governor Hochul and Attorney General Letitia James filed a lawsuit against Kalshi last month, alleging that the prediction market operator is running an illegal gambling business in New York. The lawsuit claims Kalshi has been offering illegal gambling products to New Yorkers, including those aged 18 to 20, without a state license, which could expose consumers to financial harm and evade taxes and regulatory obligations.
Kalshi has proposed to Hochul that its betting operations could generate approximately $10 billion for New York over the next five years. The company, which allows users to wager on real events such as elections and economic data, contends that its tax structure should differ from the 51% tax imposed on online sportsbooks, as the two operate differently. Kalshi argues that the capital-gains tax revenue from its traders would match or exceed the taxes collected from online sportsbooks.
Kalshi CEO Tarek Mansour remarked, "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."