New York sues Kalshi after appeals court denies emergency relief

New York sued Kalshi on July 31, alleging the prediction-market operator is running an unlicensed, illegal gambling business in the state and seeking an order to shut it down, require an accounting of customer bets and losses, and impose restitution, disgorgement, triple-gains penalties, and $100,000-per-offer fines tied to alleged unauthorized sports wagering. The filing came two days after a Second Circuit judge denied Kalshi’s request for emergency administrative relief and referred its broader injunction request to a three-judge panel, leaving the company without a temporary shield as an earlier penalty pause expired. The case also highlights a wider jurisdictional fight over whether federally regulated platforms such as Kalshi, a CFTC-registered designated contract market, remain subject to overlapping state gambling enforcement.