New York Gaming Authority Suing Kalshi
Mike Goodpaster Published 27/10/2026
The New York State Gaming Commission (NYSGC) is suing Kalshi, alleging the prediction market site has ignored subpoenas. The suit was filed in New York County Supreme Court. It seeks to force compliance with subpoenas for records related to Kalshi's sports-event contracts.
Specifically, the subpoenas are seeking records on Kalshi's offerings to New York players under the age of 21. In New York State, the minimum age to bet on sports is 21. Prediction market sites like Kalshi allow players as young as 18. Since lawyers for the state are arguing that prediction market sports-event contracts are illegal sports betting, they also argue that allowing players younger than would also be against the law.
New York State is accusing Kalshi of ignoring subpoenas
The NYSGC is accusing Kalshi of refusing to provide some documents requested by the commission's lawyers. This story was first reported by influential gambling attorney Daniel Wallach. In a filing dated October 22, lawyers representing the NYSGC argue that Kalshi has provided insufficient responses to its subpoena requests.
“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,” reads the filing.
“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 NYSGC stated that another reason it needs this data is to determine the size of those penalties. That would be if its findings determine that civil penalties will be warranted. However, the Empire State gambling regulator is not choosing to go as far as to seek a contempt finding against Kalshi.
This is what the NYSGC is seeking from Kalshi
The NYSGC issued the subpoenas to Kalshi on July 31. They were sought under Section 104(7) of New York’s Racing, Pari-Mutuel Wagering and Breeding Law. An August 14 return date was set for the subpoenas, but was not met by Kalshi.
The categories of information that the New York gambling regulators are seeking include information on Kalshi’s sports event contracts. They also want data on products Kalshi offers to New Yorkers under the age of 21. Any advertising describing its products as wagers or bets is wanted. A look at the company’s ownership and corporate structure is also being sought.
New York filed suit against Kalshi in July
The subpoenas are part of the lawsuit that New York launched against Kalshi in July. New York Governor Kathy Hochul and Attorney General Letitia James sued Kalshi. They are suing Kalshi for running an illegal gambling operation in New York through its prediction market platform.
“No matter what they call themselves, prediction markets like Kalshi are gambling platforms, plain and simple," James added.
The suit was filed following an investigation by the Office of the Attorney General (OAG). That investigation found that Kalshi’s prediction market is an illegal, unlicensed gambling operation.
“Kalshi has chosen to ignore New York’s gaming laws, which exist to protect consumers, prevent problematic gambling, deliver funding for critical public services, and ensure that every company plays by the same rules,” Governor Hochul said in a statement. “This choice has consequences, and working closely with Attorney General James, New York is taking action to stop this illegal behavior and bring Kalshi into compliance, because no company is above the law.”
These allegations have not been adjudicated in court.