Airbnb may be valued at roughly $2.5 billion, but more than half of its NY listings are illegal. Skift reports that Airbnb is aware that short-term rentals are banned under a state law that went into effect in May 2011. Furthermore, under a law passed in NYC City Council, hosts of rental units are subject to fines ranging from $1,000 for a first offense to $20,000 for repeated violations. However, the startup continues to make money from illegal listings and has never made changes to its site after the laws went into effect. Similar issues exist in other markets including Paris, San Francisco and Hawaii.