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

On October 27, the New York State Gaming Commission filed a petition with the New York County Supreme Court—pursuant to court documents—seeking an order compelling Kalshi to comply with a subpoena for testimony and documents issued on July 31 under Section 104(7) of the New York State Racing Law. The subpoena covers matters including sports-event contracts, business operations targeting users under age 21, advertising that characterizes Kalshi’s products as “betting,” and Kalshi’s equity structure and corporate governance arrangements. The Commission stated the investigation aims to assess whether civil penalties should be imposed on Kalshi and other relevant parties—and, if so, to determine the appropriate penalty amounts. As of now, Kalshi has not issued any public response. Notably, on July 31, the New York State Attorney General and the Governor jointly sued Kalshi, seeking damages of no less than $36 billion. Earlier, on July 7, federal Judge Torres denied Kalshi’s motion for a preliminary injunction. On the underlying legal question, appellate courts remain divided: the Third Circuit has sided with Kalshi, while the Ninth and Sixth Circuits have leaned toward supporting state regulators.