New York Sues Kalshi Over Sports Prediction Markets, Seeks $36 Billion

New York Attorney General Letitia James filed a $36 billion lawsuit against Kalshi, alleging the platform runs an illegal gambling operation by offering sports-related prediction markets. The state seeks an injunction to stop unlicensed wagering, plus at least $36 billion in penalties and $100,000 per unlicensed instance. The case hinges on whether sports prediction markets count as gambling under federal law and whether federal authority overrules state decisions on gambling, a debate with implications for the future of prediction markets and sports betting as the Supreme Court weighs its stance.