New York has sued prediction-market platform Kalshi, calling it an unlicensed illegal gambling operation and seeking at least $36B in damages.

Kalshi runs markets where people trade yes/no contracts on real-world events like elections and sports. New York argues those are bets that need a state gambling license Kalshi never got, and wants it shut down in the state with its profits clawed back.

The suit, filed by Governor Hochul and AG Letitia James, also seeks triple civil penalties and $100K per offering, and says Kalshi exposed residents including minors. These are unproven allegations in a complaint, not a ruling, and at least four other states have already moved against Kalshi while the CFTC pushes back on state enforcement. There is no Kalshi token.