TLDR
- The New York State Gaming Commission has asked a Manhattan court to force Kalshi to comply with subpoenas issued on July 31, 2026.
- The regulator wants records on Kalshi’s sports-event contracts, users under 21, advertising and corporate ownership.
- The Commission says it needs the records to decide whether to issue civil penalties under New York’s Racing Law.
- Kalshi also faces legal action from Utah, Connecticut and the New York Attorney General, while Ohio has set an October 30 deadline for its licensees.
- The CFTC has sued New York and three other states, arguing event contracts fall only under federal oversight.
New York’s gaming regulator has asked a state court to force Kalshi to turn over records tied to its sports-event contracts. The New York State Gaming Commission says the prediction market operator has not complied with subpoenas issued in the summer.
The petition names Kalshi Inc. and KalshiEX LLC as respondents. It was filed with the New York State Supreme Court in Manhattan, and the court logged it as received on October 22, 2026.
The Commission is represented by the office of Attorney General Letitia James. The filing became public on October 23, when sports betting attorney Daniel Wallach shared pages from it on X.
What the Gaming Commission Is Asking For
The subpoenas seek four types of records. These cover Kalshi’s sports-event contracts, products offered to New Yorkers under 21, advertising that calls its products wagers or bets, and the company’s ownership and structure.
Licensed mobile sportsbooks in New York can only accept customers aged 21 and older. The Attorney General’s July lawsuit alleged that users aged 18 to 20 can trade on Kalshi.
Kalshi has argued that its sports contracts are financial products overseen by the Commodity Futures Trading Commission (CFTC), not bets. Advertising that describes them as wagers could matter to that argument.
The petition says the records are needed to “determine whether to issue civil penalties against Kalshi and others for violations of the Racing Law.” That law requires sports wagering operators in New York to hold a state license.
The subpoenas were issued on July 31, 2026, with a return date of August 14. They came after a federal judge denied Kalshi’s request for a preliminary injunction against the Commission on July 7.
According to the petition, Kalshi “has flatly refused to produce any documents” for certain requests. The Commission says other responses fell short and that it “will be irreparably harmed” if Kalshi can ignore the subpoenas.
Kalshi Faces Legal Action in Several States
On July 31, James and Governor Kathy Hochul announced a lawsuit accusing Kalshi of running an unlicensed gambling operation. Decrypt reported that the filing put claimed damages at $36 billion at minimum.
“No matter what they call themselves, prediction markets like Kalshi are gambling platforms, plain and simple,” James said at the time. New York also sued rival platform Polymarket in September.
Utah sued Kalshi in state court this week. The state is seeking up to $61.2 million in fees and wants the company to block users located there.
Connecticut filed a lawsuit in August seeking to ban sports-event contracts. Ohio has given its gaming licensees an October 30 deadline to cut ties with prediction market operators.
The CFTC has taken the opposite side. In April, it sued New York in federal court, seeking a ruling that event contracts fall only under federal oversight. It has filed similar suits against Arizona, Connecticut and Illinois.
In August, the CFTC used its emergency authority to order Kalshi to keep operating in New York. CFTC Chairman Michael Selig said that “Congress did not intend for derivatives exchanges to be regulated under a patchwork of state gaming laws.”
The next step rests with the New York County Supreme Court, which will decide whether Kalshi must produce the records. No hearing date or ruling had been reported, and Kalshi had not publicly responded to the petition.
