According to CoinMeta, officials in New York State have filed a lawsuit against the prediction market platform Kalshi accusing it of conducting unauthorized gambling on sports, election results, and other outcomes, and have imposed a substantial financial fine on it. New York State Attorney General Letitia James stated that the platform's activities are considered gambling under state law because participants take risks on uncertain outcomes. Officials noted that the company launched its services in 2021 and added sports-related contracts in 2025, promoting them as legal national trading options. The platform allowed users aged 18 and above to participate, bypassing the state's minimum age requirement of 21 for mobile sports gambling. New York State seeks fines of several billion dollars against Kalshi, with the total amount expected to exceed $36 billion. The lawsuit also demands compensation for customers, with civil fines equal to three times the profits the company obtained from these activities, plus an additional $100,000 for each instance of unauthorized sports gambling. State regulatory authorities had previously issued a cease-and-desist order in October 2025, requiring the company to stop its unauthorized operations. Kalshi argues that its event contracts are governed by federal derivatives regulations of the Commodity Futures Trading Commission (CFTC), rather than state gambling rules.