NEW YORK SUES KALSHI OVER ALLEGED ILLEGAL GAMBLING OPERATION

Summary from the TLDR Fintech newsletter

New York is suing Kalshi, alleging its sports, political, and other event contracts constitute unlicensed gambling and seeking a permanent injunction, user restitution, and penalties that could total $36 billion. Kalshi and the CFTC argue the federally licensed exchange falls under exclusive federal oversight, escalating the broader fight over whether prediction markets are financial derivatives or state-regulated gambling.