New York

New York Wants a $36 Billion Cut From Kalshi, Calling It an 'Illegal Gambling Operation'

Casting Kalshi as an out-of-control gambling platform makes it easier for the state to take money from the company and its users.

Tosin Akintola | 7.31.2026 3:40 PM

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New York is attempting to squeeze $36 billion from the prediction market Kalshi for operating in the state without cutting in state regulators. 

In a move that would make Tony Soprano proud, New York Democratic Gov. Kathy Hochul and Attorney General Letitia James announced on Friday that the state was suing Kalshi for "running an illegal gambling operation" despite the company being a federally regulated exchange. As restitution for violating New York's gambling laws, James wants the state Supreme Court to permanently ban Kalshi from operating within its borders until it obtains "all the required licenses" from the state's Gaming Commission.

James wants Kalshi to identify "each of its customers," along with an accounting of their itemized bets, the amount of money they've lost, and the amount of revenue earned by Kalshi during its operations in New York. Should the state prevail in its case, James has asked for Kalshi to "make full restitution" to anyone in the state who used the platform, as well as a "penalty of three times the amount" of revenue generated by Kalshi in New York.

James is also seeking a penalty of $100,000 for "each offering" or "attempt........

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