New York sues Kalshi for illegal gambling, seeks $36B
6.8 Regulation New York sued Kalshi for unlicensed gambling, seeking to bar it, triple its gains, $100,000 per unauthorized wager, and at least $36 billion in damages.
New York State has filed a lawsuit against prediction-market platform Kalshi, alleging it operates as an unlicensed gambling business. The state claims Kalshi allows users to wager on sports, elections, and cultural events without proper authorization. Attorney General Letitia James filed the suit in the New York Supreme Court, seeking to bar Kalshi from operating in the state. The lawsuit demands a full accounting of customer bets, losses, and company profits, as well as restitution and disgorgement. New York is pursuing penalties equal to three times Kalshi’s gains, $100,000 for each unauthorized or attempted wager, and at least $36 billion in damages, pending a full accounting. The suit also alleges Kalshi enabled underage wagering and failed to pay required taxes, reflecting the state’s broader effort to regulate online gambling platforms.
