Kalshi Faces $36 Billion Lawsuit from New York State Over Gambling Claims

New York state filed a lawsuit against prediction market platform Kalshi, claiming it operates an illegal gambling business without registration with the New York State Gaming Commission. The state seeks a permanent injunction, $100,000 penalties for each sports wagering attempt, and restitution for users, potentially totaling $36 billion. New York Attorney General Letitia James stated that Kalshi's actions disregard state laws. Kalshi expressed disappointment, arguing that states cannot shut down a federally licensed exchange. This case could influence market perceptions of prediction markets and regulatory risk in the sector.