New York files $36 billion lawsuit against Kalshi, alleging it's running an "illegal gambling operation" - NBC Sports
New York AG Letitia James sued Kalshi for $36 billion, alleging its sports prediction markets constitute an illegal gambling operation.Summary
On August 2, 2026, New York Attorney General Letitia James filed a lawsuit against Kalshi, alleging that the company's sports-related prediction markets constitute an illegal gambling operation and seeking at least $36 billion in financial penalties plus a $100,000 fine for each alleged violation. The suit argues that while federal law permits prediction markets to operate nationwide, states retain the right to regulate gambling, and the case highlights the ongoing conflict over whether sports-based prediction markets are gambling and who has authority to regulate them. James also seeks an injunction to bar Kalshi from offering such markets without a gambling license, and the litigation is expected to contribute to the eventual Supreme Court decision on the legality of federal authorization of sports prediction markets across all states.
(Source：Google News)