New York Sues Kalshi Over Alleged Illegal Gambling

Prediction-market platform Kalshi is facing a sweeping lawsuit from New York state.

The Block reported on July 31 that New York Attorney General Letitia James accused Kalshi of offering illegal gambling services by operating prediction markets tied to sports and politics without approval from the New York State Gaming Commission.

The state asked the court to order Kalshi to stop operating in New York. It also sought full refunds for users, disgorgement of ill-gotten gains and civil penalties. The damages sought are expected to be at least $36 billion.

"Prediction markets are gambling platforms by another name," James said. "New York is working to protect consumers from illegal betting by minors and gambling addiction."