New York Takes Kalshi to Court Over Allegedly Ignored Subpoenas

New York wants Kalshi’s records and said the prediction market is refusing to hand over information needed to investigate its business.

The New York State Gaming Commission has petitioned a Manhattan court to enforce investigative subpoenas against Kalshi Inc. and KalshiEX LLC. The filing, received Oct. 22 in New York County Supreme Court, alleges the companies refused some document requests and provided insufficient responses to others.

BREAKING: The NYS Gaming Commission has sued Kalshi in NY County Supreme Court to force compliance with subpoenas seeking records on its sports-event contracts, offerings to NY’ers under 21, ads describing its products as wagers or bets, and ownership and corporate structure. pic.twitter.com/17Iiy3b0aV

— Daniel Wallach (@WALLACHLEGAL) October 23, 2026

The commission said it needs the material to determine whether to impose civil penalties for alleged violations of New York’s gambling laws, and how large those penalties should be. The petition seeks an order compelling compliance, not an immediate fine or a contempt finding.

It is another layer in an already active enforcement fight. New York separately sued Kalshi in July, seeking to stop what it alleges is an unlicensed gambling operation and recover money for consumers.

Regulators want records on contracts, customers and ads

Regulators issued the subpoenas July 31 under Section 104(7) of New York’s Racing, Pari-Mutuel Wagering and Breeding Law, with an Aug. 14 return date. They seek four broad categories of information:

• Kalshi’s sports event contracts.

• Products offered to New Yorkers under 21.

• Advertising describing its products as wagers or bets.

• The company’s ownership and corporate structure.

“Despite multiple court rulings declining to enjoin the Gaming Commission from enforcing the Racing Law, Kalshi nonetheless refuses to comply with key Subpoena requests necessary to assess the scope of Kalshi’s operations in New York,” the petition alleges.

The commission argues that leaving those requests unanswered would impair its investigation.

“The Gaming Commission seeks the documents and information requested in the Subpoenas so it can determine whether to issue civil penalties against Kalshi and others for violations of the Racing Law and, if so, in what amounts,” the filing said.

Those allegations have not been adjudicated.

A separate case already seeks a shutdown and financial recovery

The subpoena action is distinct from the lawsuit Gov. Kathy Hochul and Attorney General Letitia James announced July 31.

That case alleges Kalshi is operating an unlicensed gambling business, avoiding state licensing and tax obligations while making its markets available to users ages 18-20. New York requires mobile sports bettors to be at least 21.

The state seeks an order stopping the alleged illegal operation, forfeiting gains, providing consumer restitution, and imposing fines equal to three times the gains it alleges Kalshi obtained unlawfully. Those are requested remedies, not an award.

The age-related subpoena requests connect directly to that concern. Regulators want records that could establish the scope of younger users' access, rather than relying solely on the platform’s stated eligibility rules.

The advertising requests also put Kalshi’s own language under scrutiny: the commission seeks materials that describe the products as wagers or bets, while the company argues they are federally regulated financial contracts.

The federal defense does not settle this records fight

Kalshi has long maintained that its event contracts fall under the Commodity Futures Trading Commission’s authority rather than state gambling regulation. New York argues the products meet its legal definition of gambling and require state authorization.

The commission issued its subpoenas after a federal district court denied Kalshi’s request for a preliminary injunction against New York enforcement. That denial did not itself establish every alleged violation, but it left the state without the requested federal restraint on its investigation.

The immediate question is now narrower than the industry’s broader jurisdictional battle: whether Kalshi must produce the requested documents.

For New York, the subpoenas move toward deciding what further penalties to pursue. For Kalshi, they create another compliance dispute as it tries to keep state gambling regulators out of its business.