New York State Gaming Commission sues Kalshi, seeks court order to enforce investigative subpoena

October 27 — According to court filings, the New York State Gaming Commission has filed a petition with the New York County branch of the New York State Supreme Court, seeking to compel Kalshi to comply with an investigative subpoena issued on July 31 under Section 104(7) of the state's racing law. The subpoena concerns sports event contracts, business targeting users under 21, advertisements describing products as betting, and equity and corporate structure.

The Commission stated that the move is intended to determine whether to impose civil penalties on Kalshi and other entities and the amount of such penalties; Kalshi has not yet publicly responded. Previously, the New York State Attorney General and the Governor sued Kalshi on July 31, seeking at least $36 billion. Federal Judge Torres denied Kalshi's preliminary injunction request on July 7; appellate courts are divided, with the Third Circuit supporting Kalshi and the Ninth and Sixth Circuits supporting state regulation.