New York sues Kalshi, seeks $36B in penalties over prediction markets

New York has sued Kalshi, seeking to block its prediction markets and recover at least $36 billion in penalties and restitution over alleged violations of the state’s gambling laws. Summary New York has sued Kalshi, seeking to block its prediction markets and recover at least $36 billion in penalties and restitution. State officials alleged Kalshi offered unlicensed gambling products and allowed underage users to access its markets. The lawsuit came days after a federal judge refused to stop New York from enforcing its gambling laws against Kalshi. According to the New York Attorney General’s Office, Attorney General Letitia James filed the lawsuit on Friday, asking the court to stop Kalshi from operating prediction markets in the state and require the company to pay restitution to affected users along with civil penalties. The complaint alleges that Kalshi has been offering event contracts tied to sports, elections and cultural events without obtaining a license from the New York State Gaming Commission. State officials argue those contracts fall within New York’s legal definition of gambling rather than federally regulated derivatives. New York also alleged that Kalshi allowed re...