New York files 36 billion dollar lawsuit against prediction market Kalshi

New York state has sued prediction market company Kalshi, claiming it runs an illegal gambling business. The lawsuit was filed on Friday in Manhattan.

The state wants $36 billion in damages. It says Kalshi operates without a licence from New York's Gaming Commission and has not paid taxes that licensed gambling companies must pay. New York also claims the platform allows users under 21 to place bets, which breaks state law.

Kalshi disagrees. The company says it is a federally licensed financial exchange, similar to a stock market, not a gambling platform.