The New York State Gaming Commission Sues Kalshi to Enforce Subpoena

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On October 27, 2026, the New York State Gaming Commission sued Kalshi in the New York County Supreme Court to enforce a subpoena under state law related to the Commodity Futures Trading Commission (CFTC). The subpoena pertains to sports betting contracts, marketing to minors, and corporate structure, with the Commission seeking to impose civil penalties. Kalshi has remained publicly silent. Previously, the Attorney General and Governor sought $36 billion in damages. On July 7, a federal judge denied Kalshi’s request for a preliminary injunction. Liquidity and cryptocurrency markets may be impacted as courts remain divided on whether to support Kalshi or state regulators.

ChainThink reports that on October 27, according to court filings, the New York State Gaming Commission has filed a lawsuit with the New York County Division of the New York State Supreme Court, seeking to compel Kalshi to comply with a subpoena issued on July 31 under Section 104(7) of the New York State Racing Law.

The subpoena pertains to sports event contracts, business targeting users under 21, advertisements describing products as bets, and equity and corporate structure.

The committee stated that the move aims to determine whether civil penalties should be imposed on Kalshi and other parties, and the amount of such penalties; Kalshi has not yet responded publicly.

Previously, on July 31, the New York State Attorney General and the Governor sued Kalshi, seeking at least $36 billion in damages.

On July 7, Federal Judge Torres denied Kalshi’s request for a preliminary injunction; currently, the Third Circuit supports Kalshi, while the Ninth and Sixth Circuits support the state regulators.

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