New York Sues Kalshi For $36 Billion, Wants To Shut Down Prediction Market For Running ‘Illegal’ Gambling Operation
New York sues Kalshi for $36B, alleging its prediction market is an illegal gambling operation and seeks shutdown.Summary
The New York Attorney General Letitia James filed a 32-page lawsuit against Kalshi in Manhattan state Supreme Court, seeking at least $36 billion in compensatory damages and alleging that the prediction market operates as an illegal gambling operation violating the New York State Constitution and the Federal Interstate Wire Act. The suit also demands that Kalshi repay consumers and pay a $100,000 civil penalty for each illegal sports bet offered in New York, and asks the court to bar Kalshi from doing business in the state until it obtains a gaming license. Kalshi responded by moving the case to federal court, while the CFTC requested an emergency order to block the AG’s enforcement action, and a Kalshi spokesperson criticized the move as political theater that would drive users offshore.
(Source：Brobible)