The New York State Gaming Commission has taken another swing at the prediction market industry, becoming the latest state to take legal action against the burgeoning sector.
- New York regulators have sued Kalshi over its alleged failure to comply with subpoenas.
- The commission is seeking records on Kalshi’s sports contracts and New York operations.
- The case adds to Kalshi’s ongoing legal battles with state regulators in New York and beyond.
The gaming commission has filed a petition against Kalshi in New York County Supreme Court to “force compliance with subpoenas seeking records on its sports-event contracts, offerings to New Yorkers under 21, ads describing its products as wagers or bets, and ownership and corporate structure,” according to sports betting and iGaming lawyer Daniel Wallach.
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. https://t.co/17Iiy3b0aV
— Daniel Wallach (@WALLACHLEGAL) October 23, 2026
The state gaming commission alleges the prediction market operator has repeatedly failed to produce documents and information pertinent to its possible violations of state law, and “refuses to comply with key Subpoena requests necessary to assess the scope of Kalshi’s operations in New York.”
“Kalshi has flatly refused to produce any documents in response to Requests ... which are undeniably relevant to the Gaming Commission’s investigation into Kalshi’s mobile sports wagering operations in New York,” reads the petition.
Kalshi facing lawsuits across state lines
The lawsuit follows a string of litigation by New York against Kalshi dating back to this summer, as well as in numerous other states, most recently Utah and Connecticut.
“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,” New York Gov. Kathy Hochul said in a July press release. “This choice has consequences, and working closely with Attorney General (Letitia) James, New York is taking action to stop this illegal behavior and bring Kalshi into compliance, because no company is above the law.”
Meanwhile, prediction market news continues to see legal battles across state borders and amongst any number of prediction market operators. Alongside Kalshi, other major players, including Polymarket and Underdog, find themselves deep within litigation as they continue to assert the legality of their operations under the Commodity Futures Trading Commission.
