New York sues Kalshi for $36 billion, labels prediction market an illegal gambling operation

Published Jul 31, 07:40 PM UTC

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New York Governor Kathy Hochul and Attorney General Letitia James have sued the prediction market platform Kalshi, demanding $36 billion in penalties for operating as an alleged illegal gambling operation within the state. The lawsuit seeks a permanent ban on Kalshi in New York unless it obtains state gambling licenses, full restitution to users, and triple damages on revenue. The state argues Kalshi's contract market model violates New York's strict gambling laws. However, the Commodity Futures Trading Commission (CFTC) asserts exclusive federal jurisdiction over prediction markets and has filed for an emergency restraining order to block New York's enforcement. Two federal courts have previously sided with the CFTC, indicating a significant legal battle over the regulation of prediction markets.

Source

Reason.comWestern

Original headline: New York Wants a $36 Billion Cut From Kalshi, Calling It an 'Illegal Gambling Operation'

Original language: EN-US

People and interests

Kalshi Kathy Hochul New York