New York Gaming Commission Files Petition to Compel Kalshi Subpoena Compliance

The New York State Gaming Commission has asked a Manhattan court to force Kalshi to comply with investigative subpoenas issued this summer. The verified petition, logged by the court on October 22, 2026, names Kalshi Inc. and KalshiEX LLC as respondents. It comes as the regulator weighs civil penalties against the prediction market operator for alleged violations of state wagering laws.

The subpoenas, issued July 31, 2026, with a return date of August 14, have gone largely unanswered. According to reporting by Gambling Insider, the Commission argues Kalshi has flatly refused to produce documents in certain areas and provided insufficient responses in others. The filing became public after sports betting attorney Daniel Wallach shared pages from the petition on X: “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.”

Subpoena Scope and State Enforcement Priorities

The requests target four categories: records on sports-event contracts, products offered to New Yorkers under 21, advertising that describes those products as wagers or bets, and the company’s ownership and corporate structure. New York licensed sportsbooks are restricted to customers 21 and older. The age data would let the Commission gauge how many younger users have traded on Kalshi outside the licensed regime.

Advertising materials labeling the contracts as bets would conflict with Kalshi’s core argument that they are CFTC-regulated financial instruments, not gambling. The petition states these records are needed to determine whether to issue civil penalties under the Racing, Pari-Mutuel Wagering and Breeding Law. It accuses Kalshi of having operated a massive enterprise in New York designed to enable individuals to place wagers.

This action follows the July 31 lawsuit led by Attorney General Letitia James, which seeks at least $36 billion in damages. It also follows a July 7 federal court ruling denying Kalshi’s motion for a preliminary injunction.

The Open Jurisdictional Question

The subpoena fight sits within a larger dispute over whether CFTC authority over event contracts preempts state gambling enforcement. The CFTC has sued New York and other states, and in August used emergency authority to order Kalshi to keep offering its markets in the state. Kalshi CEO Tarek Mansour has said the company is “operating under federal rules.”

A countervailing risk for Kalshi is that court-ordered compliance would hand the Commission granular evidence on user demographics, marketing language, and operations. Noncompliance risks a finding of irreparable harm to the regulator. Other states have filed parallel actions, including Utah seeking up to $61.2 million and an Ohio deadline of October 30 for licensees to sever prediction market ties.

The New York County Supreme Court has yet to set a hearing. Until the underlying classification question receives definitive resolution, operators face continued exposure to conflicting mandates across jurisdictions.

Reporting: Gambling Insider

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