Kalshi Donates $3 Million to Housing Works Amid Legal Battle with New York

Kalshi, a New York City-based prediction market platform, has announced a $3 million donation to Housing Works, a nonprofit organization dedicated to ending the AIDS epidemic and homelessness. This multi-year partnership represents the largest single-donor gift in Housing Works' 36-year history.

The significant contribution will focus on expanding healthcare access, job training, and community services for thousands of New Yorkers. A primary beneficiary will be Housing Works’ flagship clinic in East Harlem, the 125th Street Health Center. The funding is expected to increase patient capacity, ensure continuity of care for individuals at risk of losing health coverage, and provide comprehensive services irrespective of a patient's ability to pay.

This initiative comes at a time when over 500,000 New York City residents lack health insurance, a number projected to rise. "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. He added that the partnership will help protect and expand vital services relied upon by New Yorkers annually.

The donation will also bolster Housing Works' "Ready for Work" vocational and job-training program, designed to equip participants with skills for stable employment. Additionally, Kalshi's funding will support the transformation of Housing Works' retail locations into community outreach hubs.

The philanthropic effort by Kalshi occurs while the company is embroiled in a legal dispute with New York State. In July, Gov. Kathy Hochul and Attorney General Letitia James filed a lawsuit accusing Kalshi of operating an illegal gambling business within the state. The lawsuit claims Kalshi offered gambling products to New Yorkers without a state license, potentially exposing consumers to financial harm and evading taxes and regulatory obligations imposed on licensed sportsbooks.

Kalshi, which allows users to wager on real-world events such as elections and economic indicators, has proposed a different tax structure than that of online sportsbooks. The company argues that prediction markets operate differently from sportsbooks, generating revenue through fees rather than customer losses. Kalshi has also suggested its model could generate substantial tax revenue for the state.

"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. ... 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."