New York Gaming Commission Asks Court to Enforce Kalshi Subpoenas

The New York State Gaming Commission has asked a Manhattan state court to force Kalshi to hand over records the regulator subpoenaed in July. The verified petition was logged as received in New York County Supreme Court.

The commission says Kalshi refused to produce any documents for eight of 12 requests. It needs the records to decide whether to pursue civil penalties.

What the Gaming Commission Wants the Court to Order

The commission filed the petition with New York Attorney General Letitia James’ office representing it, Hoodline reported. The respondents are Kalshi Inc. and KalshiEX LLC.

The request is narrow. The commission is seeking an order compelling compliance, not an immediate fine or a contempt finding. The petition does not allege any new violations.

The petition states the goal plainly. The commission wants to “determine whether to issue civil penalties against Kalshi and others for violations of the Racing Law.” If penalties are warranted, it also wants to determine the amounts.

The Kalshi Subpoenas and the Records New York Wants

The commission issued the subpoenas on July 31, 2026, under Section 104(7) of New York’s Racing, Pari-Mutuel Wagering and Breeding Law. Kalshi had until August 14, 2026, to respond.

The subpoenas contained 12 numbered document requests. The petition says Kalshi “flatly refused to produce any documents” for requests 1–5 and 10–12. The commission calls Kalshi’s responses to the remaining requests insufficient.

The records fall into four categories: sports-event contracts offered by Kalshi, offerings made to New Yorkers under 21, advertising that describes Kalshi’s products as wagers or bets, and Kalshi’s ownership and corporate structure.

The age category stands out. Regulated New York mobile sportsbooks may only accept customers 21 and older. Kalshi has already faced scrutiny on this front.

The advertising request targets how Kalshi’s own marketing described its products to customers.

What the Petition Alleges About Kalshi’s New York Business

The petition alleges Kalshi “operated a massive enterprise in New York designed to enable individuals to place wagers” for at least 18 months. It says Kalshi did this without a license from the commission. These allegations have not been tested in court.

The commission also points to Kalshi’s earlier losses. “Despite multiple court rulings declining to enjoin the Gaming Commission from enforcing the Racing Law, Kalshi nonetheless refuses to comply with key Subpoena requests,” the petition says.

The filing warns that the investigation would be irreparably harmed if Kalshi keeps defying the subpoenas.

Kalshi’s Federal Court Setbacks in New York

The state court petition follows a run of federal decisions that went New York’s way. On July 7, 2026, U.S. District Judge Analisa Torres of the Southern District of New York ruled against Kalshi. She denied its request for a preliminary injunction against the commission.

The Second Circuit turned down Kalshi’s emergency request on July 29, and its appeal is still pending.

Federal regulators are also involved. In April 2026, the Commodity Futures Trading Commission (CFTC) sued New York in the Southern District. It is seeking a declaratory judgment that federal authority over event contracts is exclusive. The CFTC has challenged prediction-market regulatory activity in at least nine states.

Other States Taking Kalshi to Court

New York is not acting alone. Massachusetts, Michigan, Nevada, and Washington have secured court orders restricting Kalshi. Nevada extended its Kalshi ban in their case.

Utah and Connecticut are also in litigation, and New York filed a separate suit against Polymarket in September. Around the same time as the New York petition, Kalshi sued Louisiana officials in federal court.