State Attorney General Letitia James filed a lawsuit seeking to ban the company’s operations in the state. Kalshi was accused of offering sports, cultural, and election betting without a license from the local gaming regulator. The company was also accused of tax evasion. Kalshi is being required to fully compensate users. This includes all revenue earned from placing shares, as well as paying penalties amounting to three times its profit. The amount being sought exceeds $36 billion. This week, New York joined the list of 44 states that urged the CFTC to limit its authority over regulating prediction markets in favor of the states.