New York Gaming Commission asks court to force Kalshi to hand over sports contract records

What the Commission is asking for

The petition opens by alleging that for at least 18 months Kalshi has operated "a massive enterprise in New York designed to enable individuals to place wagers relating to sports and other matters". It says New York's Racing Law prohibits offering sports wagering without a Commission licence and that Kalshi does not hold one.

According to legal analyst Daniel Wallach, who published excerpts of the filing, the subpoenas 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 its ownership and corporate structure. New York law treats anyone under 21 as a minor for sports wagering purposes.

The Commission 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". It also argues that its investigation "will be irreparably harmed if Kalshi is permitted to defy the lawfully issued Subpoenas".

Section 104(7) allows Commission members and designated staff to issue subpoenas for witnesses and for relevant reports, books, papers, documents and correspondence.

How the dispute reached this point

The subpoena fight is the latest in a series of New York proceedings over Kalshi's sports contracts.

• October 24, 2025: The Commission sent Kalshi a cease-and-desist letter over what it called an unlicensed mobile sports wagering platform.
• October 27, 2025: Kalshi sued the Commission's members in federal court in Manhattan (KalshiEX LLC v. Williams, No. 25-cv-08846, S.D.N.Y.). The Commission agreed to hold off enforcement while the court considered Kalshi's request for an injunction.
• July 7, 2026: The federal court denied Kalshi's motion for a preliminary injunction. Kalshi appealed to the Second Circuit (No. 26-1835), and on July 27 the court also refused an injunction pending that appeal.
• July 31, 2026: The Attorney General filed a separate civil enforcement petition against KalshiEX in state court seeking an injunction, restitution, disgorgement and penalties. Kalshi removed that case to federal court the same day (No. 1:26-cv-06550), and the state's motion to send it back to state court was fully briefed by August 28. The Commission issued its subpoenas on the same date.

The petition says Kalshi continues to resist the subpoenas "despite multiple court rulings declining to enjoin the Gaming Commission from enforcing the Racing Law".

The wider legal picture

Kalshi is regulated by the U.S. Commodity Futures Trading Commission (CFTC) as a designated contract market and argues that federal commodities law displaces state gambling rules for its event contracts. States including New York say the products are unlicensed sports betting.

The question is now before the U.S. Supreme Court in a petition from New Jersey's gaming regulator, Flaherty v. KalshiEX (No. 26-299). Kalshi's response is due on November 9, and dozens of states, tribes, the NFL and the American Gaming Association have filed amicus briefs. State regulators are also looking at the businesses that support prediction markets, as in recent moves by Utah and Ohio on market makers and suppliers.

The court has not yet ruled on the petition. No public response from Kalshi to the subpoena petition had been reported at the time of writing.