New York sues Kalshi over alleged unlicensed illegal gambling

New York state has sued prediction market platform Kalshi over allegedly operating unlicensed gambling services, seeking to bar the company from doing business in the state and to recover damages, CoinDesk reported. According to a complaint filed with the New York Supreme Court today, New York alleged Kalshi offered sports and event wagering without a proper license, amounting to illegal gambling. New York Attorney General Letitia James said prediction markets are clearly gambling platforms and stressed Kalshi violated laws including a ban on underage betting. The state is seeking penalties equal to three times the alleged illicit gains, along with civil fines of $100,000 per violation attempt. Kalshi, which had been growing with a goal of reaching a $40 billion valuation, now faces heightened regulatory risk in New York after a federal court denied injunctive relief, adding to the latest lawsuit and contrasting with its court win in Minnesota.