New York moves to shut down a prediction market and claw back up to US$36 billion
CNBC reported that the suit seeks a permanent injunction, full restitution to users who traded on the platform, a US$100,000 penalty for each attempt to offer sports wagering, and a further penalty of three times the company’s alleged illegal gains.
James’s petition contends that Kalshi’s users bet on outcomes they cannot control, from the Super Bowl winner to the result of the reality show ‘Big Brother,’ Reuters reported.
The state went further than sports, CNBC reported, alleging that Kalshi’s election, culture and other event contracts also breach New York law.
The platforms can fuel problem gambling, including among people under 21, and threaten users’ financial, emotional and physical wellbeing, James said, per Reuters.
She also objected to Kalshi letting 18- to 20-year-olds trade, below the 21 minimum New York sets for mobile sports betting.
