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New York seeks $36B from Kalshi in bid to shut prediction market
The state is asking a court to bar Kalshi from operating in New York and to strip the platform of at least three times its earnings, while the CFTC sought a restraining order days earlier.
New York State is seeking at least $36 billion from prediction market operator Kalshi, arguing the platform should be shut down and treated as an unlicensed gambling business. In filings, New York also asked the court to impose damages tied to a multiple of Kalshi’s gains, pending a full accounting.
The New York attorney general filed the petition on Friday with a motion for a temporary restraining order, asserting Kalshi violated New York’s gambling ban and laws covering bookmaking, possession of gambling records, unlicensed mobile sports wagering, and the federal Wire Act. New York is also seeking $100,000 for every offer of sports wagering, along with restitution and disgorgement.
Investigators described test bets, including four contracts on Connecticut to beat Michigan in April valued at $1.14 including fees. The petition also says Kalshi allows 18-year-olds to open accounts where New York requires participants to be 21, and it offers markets tied to games involving New York college teams that licensed operators are barred from touching.
The Commodity Futures Trading Commission moved first, asking a court to prevent New York from enforcing against Kalshi and other CFTC registered platforms. Decrypt reports the CFTC previously sued New York in April to establish federal law gives it sole authority over event contracts, while Kalshi has been restrained in Michigan and Washington and has largely been losing in attempts to obtain relief in New York.