According to CoinMeta, the state of New York has filed a lawsuit against the prediction market Kalshi for providing sports and event betting without a gambling license. The complaint was submitted to the New York Supreme Court on Friday, requesting the judge to ban the company from operating unlicensed gambling activities, to account for customers' bets, losses, and company profits, and also seeking compensation and civil fines. The amount of the fine sought by the state government is equivalent to three times the revenue Kalshi has obtained from this activity, as well as a fine of $100,000 for each unauthorized provision of sports betting. Kalshi aimed for a valuation of $40 billion in its June financing round and is facing legal challenges from multiple states. A court in Minnesota has ruled that laws banning prediction markets may violate the Commodity Exchange Act and has issued preliminary bans against Kalshi and Polymarket. James's office described the events contracts of Kalshi as bets, stating that the platform accepts bets on professional and college sports and allows users aged 18 to 20 to participate.