The New York State Gaming Commission (NYSGC) has filed a lawsuit against Kalshi in New York County Supreme Court over the operator's refusal to comply with various subpoena requests.
The requests are for records related to Kalshi’s sports-event contracts, offerings to residents who are under 21, advertisements describing its products as wagers or bets and the operator’s ownership 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 lawsuit reads.
“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 Gaming Commission’s investigation into Kalshi’s potential violations of New York’s gambling laws will be irreparably harmed if Kalshi is permitted to defy the lawfully issued subpoenas.”
The NYSGC requested the court force Kalshi to fully comply with the regulator’s subpoena requests by producing all responsive and non-privileged documents within 10 days of the judge’s order.
New York's gaming regulator also claimed that Kalshi’s ownership information would be used to determine who is responsible for any violations of the state’s Racing Law and to potentially open new investigative avenues into additional prediction market operators.
In late September, New York Attorney General Letitia James and Governor Kathy Hochul filed a lawsuit against Polymarket for “running an illegal gambling operation,” seeking a court order which would forbid the prediction market from offering event contract trading to residents.
Along with the court order, James and Hochul also requested Polymarket forfeit all illegal gains, distribute restitution to affected users and pay fines equal to three times its profit from New York operations.
The New York Senate unanimously passed A10329 on September 23, which would require sports betting operators to send monthly betting statements to users beginning on January 1, 2027
