New York AG Seeks $36B From Kalshi Over 'Illegal Gambling'
New York is suing Kalshi for at least $36 billion, seeking to shut down its prediction market and recover triple its earnings, plus $100,000 per sports wagering offer, restitution, and disgorgement. The state says Kalshi operates an unlicensed gambling business across eight legal violations, including state gambling bans, bookmaking, unlicensed mobile sports wagering, and the federal Wire Act. Investigators found the platform allowed 18-year-olds, accepted bets on out-of-state college games, and took test sports contracts. The case comes amid a broader fight over who regulates event contracts. Kalshi and the CFTC argue federal law gives the CFTC sole authority, while New York says state gaming laws still apply. Kalshi has recently lost injunction fights in New York, Michigan, and Washington, though it has won some relief in New Jersey and Minnesota.
