The legal battle against the fast-growing prediction markets sector continues to heat up. On Friday, New York became the latest state to put a halt to the markets, filing a petition that accuses industry leader Kalshi of operating an unlicensed gambling platform.
The state alleges that Kalshi, which operates one of the most successful prediction markets in the country, facilitates illegal wagering on sports, elections, and culture without a proper license from the New York State Gaming Commission. It is asking the court to impose civil penalties of $100,000 for each unauthorized sports‑betting offer, which the filing estimates could total about $36 billion.
The petition comes at a time when Kalshi is growing rapidly. In May, the company said its annualized trading volume had tripled in six months to $178 billion, and it raised $1 billion at a $22 billion valuation. It is now reportedly eyeing another round that could push its valuation close to $40 billion.
Friday’s petition comes nine months after Kalshi sued New York’s gaming regulator in federal court. In that case, Kalshi first asked for a temporary restraining order and preliminary injunction to stop New York from enforcing its gambling laws against the company, but the court denied the request in July. Later that same month, Kalshi sought an emergency injunction pending appeal, but that request was also denied.
