New York State has filed a lawsuit against Kalshi, a prediction market platform. The legal action accuses the company of operating an illegal gambling enterprise within the state.
In the complaint, the state is seeking at least $36 billion in compensatory damages.
Part of a broader regulatory crackdown
The suit against Kalshi follows similar legal actions taken by New York State against major cryptocurrency exchanges (note: this statement is, per claim:2). The state previously filed lawsuits against Coinbase and Gemini, marking a continued effort to regulate digital asset and prediction markets under existing gambling laws.
Updates
The lawsuit now seeks to permanently bar Kalshi from operations, requesting an accounting of all bets and civil penalties including $100,000 per unauthorized wager and triple the company's gains. Allegations have expanded to include claims that the platform permits users under 21 to wager and offers prohibited markets on New York college teams, following a prior October cease-and-desist order. Amidst these developments, the CFTC has filed an emergency motion to block New York's enforcement, arguing the state is overstepping its exclusive federal regulatory authority, while a Minnesota court recently ruled that similar state bans likely violate the Commodity Exchange Act.
The lawsuit alleges that Kalshi allows individuals aged 18 to 20 to wager, violating New York's 21-year age floor, and provides prohibited markets on state college teams. New York is seeking a penalty equal to three times Kalshi's gains plus $100,000 for each unauthorized wagering offer, while the CFTC has filed an emergency motion to block New York's enforcement, asserting exclusive federal authority under the Commodity Exchange Act. Additionally, a federal judge denied Kalshi's attempt to halt state regulators on July 7 and subsequently rejected an injunction pending appeal on July 27.
The New York Supreme Court petition alleges Kalshi facilitated underage wagering for 18-to-20-year-olds and offered prohibited markets involving New York college teams. Beyond the $36 billion in damages, the state is seeking penalties equal to three times Kalshi's gains and $100,000 for each unauthorized sports wagering offer. The legal action follows an October cease-and-desist order and includes eight counts ranging from constitutional gambling bans to violations of the federal Wire Act.
The lawsuit, filed in the New York Supreme Court, seeks a permanent injunction and penalties including $100,000 for each unauthorized sports wagering offer and a fine equal to three times Kalshi's gains. The petition alleges the company allowed users aged 18 to 20 to wager and offered prohibited markets involving New York college teams. Additionally, the CFTC has filed an emergency motion to block New York's enforcement, arguing the state is interfering with its exclusive authority under the Commodity Exchange Act.
The New York lawsuit, filed in the state Supreme Court, seeks to bar Kalshi from operating in the state and demands a penalty equal to three times the company's gains, along with $100,000 for each unauthorized sports wagering offer. The petition, filed by Attorney General Letitia James, alleges that Kalshi allowed users aged 18 to 20 to wager and offered prohibited markets involving New York college teams. Additionally, the legal action includes eight counts ranging from violations of the New York Constitution to the federal Wire Act, alongside a request for a permanent injunction.
The New York lawsuit, filed in the New York Supreme Court, seeks to bar Kalshi from unlicensed gambling operations and includes requests for restitution, civil penalties, and a fine equal to three times the company's gains. The petition specifically alleges that Kalshi allowed users aged 18 to 20 to wager despite the state's age limit of 21 and offered prohibited markets involving New York college teams. Additionally, the legal action follows an October cease-and-desist order from the New York State Gaming Commission and includes a motion for a temporary restraining order.
The lawsuit, filed in the New York Supreme Court, seeks a permanent injunction and penalties including $100,000 for each unauthorized sports wagering offer and a fine totaling three times Kalshi's gains. New York officials allege the company allows underage betting by individuals aged 18 to 20 and offers prohibited markets involving New York college teams. Additionally, the US Commodity Futures Trading Commission (CFTC) has filed an emergency motion to block these enforcement efforts, arguing New York is interfering with its exclusive authority under the Commodity Exchange Act.
The lawsuit filed in the New York Supreme Court alleges that Kalshi operates an unlicensed gambling business by offering event contracts on elections, culture, and sports, specifically noting that the platform allows users aged 18 to 20 to wager despite New York's minimum age requirement of 21. In addition to seeking the $36 billion in damages, New York is requesting a penalty equal to three times Kalshi's gains, $100,000 for each unauthorized sports wagering offer, and a permanent injunction to bar the company from operating in the state. Meanwhile, the CFTC has filed an emergency motion to block these enforcement efforts, arguing that New York is interfering with its exclusive authority to
The lawsuit, filed in the New York Supreme Court, seeks a permanent injunction to bar Kalshi from unlicensed operations, alongside restitution, damages, and civil penalties including a fine equal to three times the company's gains. The petition further demands $100,000 for each unauthorized or attempted sports wagering offer and alleges that the platform allows underage users aged 18 to 20 to participate. Additionally, the legal action claims Kalshi violates state law by offering markets involving New York college teams and fails to comply with tax and regulatory obligations.
The New York lawsuit, filed in the New York Supreme Court, specifically alleges that Kalshi operates an unlicensed gambling business by offering event contracts on sports, elections, and culture, while also allowing users aged 18 to 20 to wager despite the state's minimum age of 21. Beyond the $36 billion in damages, the state is seeking a penalty equal to three times Kalshi's gains, $100,000 for each unauthorized sports wagering offer, and a permanent injunction to bar the company from operating in the state. In response, the CFTC has filed an emergency motion to block New York's enforcement, arguing the state is interfering with its exclusive federal authority under the Commodity Exchanges
The lawsuit filed in the New York Supreme Court by Attorney General Letitia James alleges that Kalshi operates an unlicensed gambling business involving sports, elections, and culture, specifically noting that the platform allows users aged 18 to 20 to wager despite a state minimum of 21. In addition to seeking $36 billion in damages, the state is pursuing penalties equal to three times Kalshi's gains, $100,000 for each unauthorized sports wagering offer, and a permanent injunction to bar the company from operating in the state. Meanwhile, the CFTC has filed an emergency motion to block these enforcement efforts, arguing that the state's actions interfere with its exclusive federal authority
The New York lawsuit, filed in the New York Supreme Court, seeks a permanent injunction alongside civil penalties equal to three times Kalshi's gains and $100,000 for each unauthorized sports wagering offer. Attorney General Letitia James alleges the platform operates an unlicensed gambling business by offering event contracts on elections, culture, and sports—including prohibited New York college teams—while allowing users aged 18 to 20 to wager despite the state's legal minimum of 21. In response, the CFTC has filed an emergency motion to block New York's enforcement, arguing that such state actions interfere with its exclusive federal authority under the Commodity Exchange Act.
The lawsuit, filed in the New York Supreme Court, seeks a permanent injunction and penalties including restitution, forfeiture of illegal gains, and civil penalties totaling three times the company's profits. Additionally, the state is requesting $100,000 for each unauthorized or attempted sports wagering offer and claims Kalshi allowed users aged 18 to 20 to wager, violating the state's minimum age requirement of 21. The legal action, which follows an October cease-and-desist order, involves eight counts ranging from violations of the federal Wire Act to unlicensed mobile sports wagering.
The New York lawsuit, filed in the New York Supreme Court, specifies that the state is seeking a penalty equal to three times Kalshi's gains, $100,000 for each unauthorized sports wagering offer, and a permanent injunction to bar the company from unlicensed operations. Legal filings allege Kalshi allows users as young as 18 to wager, violating the state's minimum age of 21, and offers prohibited markets involving New York college teams. Additionally, the US Commodity Futures Trading Commission (CFTC) has filed an emergency motion to block New York's enforcement, arguing the state is interfering with its exclusive authority under the Commodity Exchange Act.
The lawsuit, filed in the New York Supreme Court by Attorney General Letitia James, seeks constant injunctions, restitution for users, and civil penalties equal to three times Kalshi's gains. Additional claims against the company include unauthorized wagering by individuals aged 18 to 20, prohibited markets involving New York college teams, and a $100,000 penalty for each unauthorized sports wagering offer. Meanwhile, the CFTC has filed an emergency motion to block New York's enforcement, arguing the state is interfering with its exclusive authority under the Commodity Exchange Act.
The lawsuit, filed in Manhattan's New York Supreme Court, includes eight counts ranging from constitutional gambling bans to violations of the federal Wire Act. New York is seeking a permanent injunction, restitution to users nationwide, and civil penalties equal to three times the company's gains, alongside $100,000 for each unauthorized sports wagering offer. Additionally, the petition alleges Kalshi allowed users aged 18 to 20 to wager, violating the state's minimum age of 21, and offered prohibited markets involving New York college teams.
The lawsuit, filed in the New York Supreme Court, alleges that Kalshi operates an unlicensed gambling business through event contracts on sports, elections, and culture, while also allowing users aged 18 to 20 to wager despite the state's age limit of 21. New York is seeking a permanent injunction, restitution for users, and civil penalties including $100,000 for each unauthorized sports wagering offer and a penalty equal to three times the company's gains. In response, the CFTC has filed an emergency motion to block the enforcement, arguing that the state's actions interfere with its exclusive authority under the Commodity Exchange Act.
