The New York State Gaming Commission has asked a state court in Manhattan to order Kalshi Inc. and KalshiEX LLC to comply with investigative subpoenas it served in July. The verified petition, filed in the Supreme Court of the State of New York, County of New York, was received on the court’s e-filing system on 22 October 2026, RG reports. The Commission is represented by the office of Attorney General Letitia James. Pages of the filing were posted by gaming lawyer Daniel Wallach.
What the Commission wants
The subpoenas were issued on 31 July 2026 under Section 104(7) of New York’s Racing, Pari-Mutuel Wagering and Breeding Law, with a return date of 14 August. According to Wallach, they seek records on Kalshi’s sports event contracts, its offerings to New Yorkers under 21, advertising that describes its products as wagers or bets, and Kalshi’s ownership and corporate structure. The petition asks the court to order both Kalshi companies to comply in full and to produce all responsive, non-privileged documents within ten days of an order, AskSpinner reports.
The Commission alleges that “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.” It says it needs the material “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.” These are the petitioner’s allegations; the court has not ruled, and no public response from Kalshi had been reported. Kalshi argues that its event contracts are federally regulated by the CFTC, not by state gambling law.
How it got here
The Commission sent Kalshi a cease-and-desist letter on 24 October 2025, and Kalshi sued the Commission’s members in federal court three days later (KalshiEX LLC v. Williams, S.D.N.Y.). On 7 July 2026 that court denied Kalshi a preliminary injunction; Kalshi appealed to the Second Circuit, which on 27 July also refused an injunction pending appeal. On 31 July the Attorney General filed a separate civil enforcement case against KalshiEX, which Kalshi removed to federal court the same day, and the Commission issued its subpoenas. Separately, the CFTC sued New York in April in the Southern District of New York, seeking a ruling that federal law gives it exclusive authority over event contracts.
Key facts
Petitioner: New York State Gaming Commission, represented by the NY Attorney General.
Respondents: Kalshi Inc. and KalshiEX LLC.
Court: NY Supreme Court, New York County; received 22 Oct 2026.
Subpoenas: issued 31 Jul 2026 under Racing Law §104(7); return date 14 Aug 2026.
Relief sought: full compliance, documents within 10 days of an order.
Status: no ruling reported; no public Kalshi response reported.
Why it matters for GambleFi
Most state fights with prediction markets so far have been lawsuits over federal preemption. A subpoena enforcement petition is a different tool: the regulator is building a civil-penalty file, and the requests on under-21 users, “bet” advertising and ownership could reach beyond Kalshi itself, since the Commission refers to penalties against “Kalshi and others”. That matters for the crypto wallets and exchanges now plugging Kalshi into their apps, such as Phantom, and for onchain venues built around an iGaming token, also called a GambleFi token. Other states are moving too: Utah has sued Kalshi and its market maker, and Ohio is pressing its licensees to cut ties with prediction markets. Covers has more on the wider litigation, SX Bet is an onchain betting exchange we track, and the GambleFi FAQ covers the basics. This is a news report, not legal, financial or gambling advice.