New York Gaming Commission seeks court order to compel Kalshi subpoena compliance

The New York State Gaming Commission has filed a verified petition in the Supreme Court of the State of New York, County of New York, naming Kalshi Inc. and KalshiEX LLC as respondents and asking the court to compel compliance with investigative subpoenas, according to court records. The court’s electronic filing system logged the petition as received on October 22, 2026, and the filing became public on October 23.

The Commission is represented by the office of Attorney General Letitia James. The subpoenas, issued on July 31, 2026, with a return date of August 14, seek records on Kalshi’s sports-event contracts, products offered to New Yorkers under the age of 21, advertising that describes Kalshi’s products as wagers or bets, and the company’s ownership and corporate structure.

Alleged non-compliance

According to the petition, Kalshi “has flatly refused to produce any documents” in response to certain requests and “refuses to comply with key Subpoena requests necessary to assess the scope of Kalshi’s operations in New York.” The petition states that the information is required to “determine whether to issue civil penalties against Kalshi and others for violations of the Racing Law.”

The petition also accuses Kalshi of having “operated a massive enterprise in New York designed to enable individuals to place wagers.” The petition put the claimed damages at $36,000,000,000.00 at minimum pending accounting.

Broader enforcement action

On July 31, Attorney General Letitia James and Governor Kathy Hochul announced a lawsuit accusing Kalshi of running an unlicensed gambling operation, seeking to halt its New York business, force the forfeiture of its gains, secure restitution for consumers and impose fines equal to three times those gains.

“No matter what they call themselves, prediction markets like Kalshi are gambling platforms, plain and simple,” James said at the time. Hochul said that “Kalshi has chosen to ignore New York’s gaming laws, which exist to protect consumers.”

Speaking after the Attorney General’s lawsuit was filed, Kalshi CEO Tarek Mansour said the company is operating under federal rules.

On July 7, District Judge Analisa Torres of the US District Court for the Southern District of New York denied Kalshi’s motion for a preliminary injunction against the Commission and its officials.

Multi-state and federal disputes

New York filed suit against Polymarket in September. Utah sued Kalshi in state court this week, asking it to geofence the state and seeking to recover up to $61.2 million in fees it allegedly collected. Connecticut has gone to court in a bid to ban sports-event contracts in the state, with a lawsuit filed in August 2026. Ohio gave its gaming licensees an October 30 deadline to cut ties with prediction market operators.

In April, the CFTC sued the State of New York in the Southern District of New York, seeking a declaratory judgment that federal law gives the agency exclusive authority over event contracts and a permanent injunction against state enforcement aimed at its registrants. The CFTC filed the New York suit on April 24, 2026, and had already brought similar suits against Arizona, Connecticut and Illinois.

“New York is the latest state to ignore federal law,” CFTC Chairman Michael Selig said when the suit was announced, adding that “the CFTC will not allow overzealous state governments to undermine the agency’s longstanding authority over these markets.” After New York sued Kalshi, the CFTC used its emergency authority to order the exchange to keep operating in the state.