New York sues Kalshi in sweeping prediction market crackdown

The state is seeking at least $36 billion in damages from the prediction market platform it calls an unlicensed gambling operation, and has filed for a temporary restraining order to halt its contracts immediately. Summary New York Attorney General Letitia James and Governor Kathy Hochul sued KalshiEX on July 31, 2026, in New York Supreme Court, Manhattan, seeking at least $36 billion in compensatory damages, triple-gains penalties, and $100,000 per unauthorized sports wagering offer. The state simultaneously filed a motion for a temporary restraining order to halt Kalshi’s event contracts in New York immediately, citing ongoing harm to consumers including users under the legal gambling age of 21. Kalshi users bet over $1 billion monthly on the platform in 2025, with 90% of that volume on sports, according to figures cited in the AG’s own release, a concentration that makes the bipartisan Senate proposal to ban sports event contracts existential for the business. Kalshi, valued at roughly $22 billion with annualized volume of approximately $178 billion, calls the suit “political theater” and argues its CFTC registration as a designated contract market means exclusive federal oversi...