Odaily Planet Daily reports that, according to court filings, the New York State Gaming Commission has filed a complaint with the New York County Division of the New York State Supreme Court, seeking a court order to compel Kalshi to comply with a subpoena issued on July 31 under Section 104(7) of the New York State Horse Racing Law. The subpoena concerns contracts tied to sporting events, business activities targeting users under 21, advertisements describing products as bets, and equity and corporate structure. The Commission stated that this action aims to determine whether to impose civil penalties on Kalshi and other entities, and to determine the amount of such penalties; Kalshi has not publicly responded. Previously, on July 31, the New York State Attorney General and Governor filed a lawsuit against Kalshi seeking at least $36 billion in damages. On July 7, Federal Judge Torres denied Kalshi’s request for a preliminary injunction; appellate courts have taken divergent positions, with the Third Circuit supporting Kalshi and the Ninth and Sixth Circuits supporting state regulators.
New York State Gaming Commission Sues Kalshi Over Subpoena Enforcement
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Summary
The New York State Gaming Commission has filed a lawsuit in the New York County Supreme Court to enforce a subpoena related to enforcement actions under its Racing, Pari-Mutuel Wagering and Breeding Law. The subpoena, issued on July 31, seeks records concerning contracts, underage targeting, betting-related advertisements, and corporate structure. The Commission is evaluating penalties against Kalshi and others. Separately, New York’s Attorney General and Governor sued Kalshi for $36 billion, and a federal judge denied a preliminary injunction on July 7. Appellate courts are divided, with the Third Circuit siding with Kalshi and the Ninth and Sixth Circuits supporting the states. The case could impact broader enforcement actions and regulatory scrutiny related to the CFTC.
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