New York Gaming Commission asks Manhattan court to enforce Kalshi subpoenas over sports-event contracts

The New York State Gaming Commission has asked a Manhattan court to order Kalshi Inc. and KalshiEX LLC to comply with subpoenas tied to their operations in the state. The fight matters for high-risk payments because the commission is building a record for possible civil penalties, while Kalshi says its event contracts are financial products overseen by the CFTC.

1. The petition was filed on 22 October and names Kalshi Inc. and KalshiEX LLC. The commission says it needs the records to decide whether the companies violated New York gambling laws and, if so, what civil penalties to seek.
2. The subpoenas were issued on 31 July, with records due by 14 August under Section 104(7) of New York’s Racing, Pari-Mutuel Wagering and Breeding Law. They cover sports-event contracts, offerings to people under 21 in New York, advertising that describes products as wagers or bets, and ownership and corporate structure.
3. The petition asks the court to award at least three times Kalshi’s earnings, plus restitution and disgorgement, and to fine the company $100,000 for every sports wagering offer made in New York. It lays out eight counts, including alleged violations of the state’s constitutional gambling ban, bookmaking laws, gambling-record rules, unlicensed mobile sports wagering rules, and the federal Wire Act.
4. The commission says Kalshi has offered sports-related wagers in New York for at least 18 months without the licence required under state law, and that the company has refused to provide some requested records while giving incomplete responses to others. The filing also cites Kalshi’s reported valuation of US$22bn and annualised trading volume of US$178bn.
5. The petition notes that James has also pursued similar enforcement actions against cryptocurrency firms Coinbase and Gemini under comparable legal theories. Kalshi, for its part, continues to argue that its event contracts are financial products regulated by the CFTC.