New York filed a lawsuit on July 30 against platform KalshiEx LLC, accusing it of operating an illegal gambling operation without a state license. Attorney General Letitia James and Governor Kathy Hochul are seeking at least $36 billion in compensatory damages, plus full restitution to users and disgorgement of profits. The platform, registered with the Commodity Futures Trading Commission, argues that its event contracts are regulated financial instruments, but New York disputes this classification. Kalshi’s monthly volume reached $33 billion by June 2026, with 90% focused on sports events, explaining the historic damages sought. This case could reshape the future of prediction markets nationwide.
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