New York Sues Kalshi for Illegal Gambling, Seeking Triple Damages and Blocking Under-21 Access
Updated
Updated · CBS New York · Jul 31
New York Sues Kalshi for Illegal Gambling, Seeking Triple Damages and Blocking Under-21 Access
3 articles · Updated · CBS New York · Jul 31
Summary
New York asked a court to shut Kalshi in the state, order consumer restitution, seize profits and impose fines worth three times its New York revenue over alleged illegal gambling.
The suit says the New York City-based platform is unlicensed with the state Gaming Commission and lets users under 21 place bets, exposing residents to financial risk and addiction.
Kalshi called the case political theater, arguing states cannot close a federally licensed exchange and warning New Yorkers would be pushed to offshore platforms.
The filing deepens a widening state-federal clash: the CFTC says it has exclusive authority over prediction markets and has sued at least nine states, including New York, to stop their enforcement actions.
That fight has grown as prediction-market trading surged to about $24 billion a month by April 2026, up from under $5 billion in September 2025.