New York Gaming Commission sues Kalshi over subpoenas

The New York Gaming Commission has filed a petition in the New York County Supreme Court to compel Kalshi Inc. and KalshiEX LLC to comply with investigative subpoenas issued in July. The regulator is seeking documents related to the platform's sports-event contracts, its offerings to individuals under the age of 21, advertising materials that may describe products as wagers or bets, and details regarding the company's ownership and corporate structure.

The Commission alleges that Kalshi has been operating a sports wagering business in New York for at least 18 months without the required state license. The regulator intends to use the requested information to determine whether to issue fines against the prediction market platform and other entities.

Kalshi maintains that its event contracts are financial derivatives overseen by the Commodity Futures Trading Commission (CFTC) rather than gambling products. The company argues that federal regulation preempts state gambling laws, a legal position that the court has yet to rule upon.