According to CoinMeta, New York State has launched the most aggressive state-level lawsuit against the predictive market industry, demanding the closure of Kalshi and claiming compensation of $36 billion, which is approximately 1.6 times its valuation. The lawsuit alleges that Kalshi handled billions of dollars in unlicensed bets without paying any gambling taxes. At the core of the case is whether a federal derivatives license can protect the platform from state gambling enforcement. New York State believes that Kalshi operates an unlicensed gambling business and accuses it of allowing users under the age of 21 to place bets, in violation of state laws. This case could have a significant impact on the operations of Kalshi; if a temporary restraining order is granted, Kalshi will need to immediately suspend its business in New York.