New York State Sues Kalshi for Operating Illegal Gambling Business

July 31st, New York State has sued Kalshi, accusing the platform of operating an illegal gambling business in the state, marking another setback for the prediction market platform.

On Friday, New York Attorney General Letitia James filed a lawsuit seeking a court order to prohibit Kalshi from operating in the state and demanding that the company pay fines and restitution to users.

Meanwhile, New York State also filed a motion for a preliminary injunction, seeking to halt event contract trading related to Kalshi in the state. The motion also requests the court to order Kalshi to refund users in full, relinquish all profits obtained through these products, pay a fine equal to triple their gains, and a $100,000 penalty for each product. According to court documents, the requested restitution amount could be at least $36 billion, with the specific figure to be determined after a comprehensive audit.