Kalshi subpoena petition opens new front as Louisiana suit lands
New York's gaming regulator has asked a Manhattan court to force Kalshi to hand over records on sports contracts and under-21 users, a day before Kalshi sued Louisiana to keep its contracts live there.
A Kalshi subpoena petition filed in Manhattan has turned New York's long-running dispute with the prediction market into a fight over documents. The New York State Gaming Commission, represented by Attorney General Letitia James' office, wants a state judge to order Kalshi Inc. and KalshiEX LLC to comply with investigative subpoenas, according to filings reported on Oct. 25.
What happened
The verified petition, received by the court system on Oct. 22, says the commission served the subpoenas on July 31, citing Section 104(7) of the Racing Law, and set Aug. 14 as the deadline. The demands cover records on Kalshi's sports-event contracts, access by New Yorkers under 21, marketing that describes the products as wagers or bets, and the companies' ownership and corporate structure, RG and Predictable reported. Gaming attorney Daniel Wallach posted pages of the filing.
The commission says it needs the material "so it can determine whether to issue civil penalties against Kalshi and others for violations of the Racing Law and, if so, in what amounts." It alleges that for at least 18 months Kalshi has run an enterprise in New York designed to let people bet on sports and other events without a license. Kalshi has argued for years that its event contracts are federally regulated derivatives overseen by the Commodity Futures Trading Commission. No ruling has been reported, and RG found no public response from the company.
A day after the New York filing, KalshiEX went on offense in the South. On Oct. 23 it sued Louisiana Attorney General Liz Murrill, Governor Jeff Landry, the state Gaming Control Board and the State Police gaming division in the Western District of Louisiana, asking for a declaration that state gambling law cannot reach its federally designated exchange, AskSpinner reported.
Why it matters
Kalshi says it expects Louisiana to act "imminently" against its contracts and plans to seek a preliminary injunction. The complaint points to a December 2025 advisory in which the board called sports event contracts illegal gambling even on a CFTC-regulated venue, and to enforcement powers that took effect on Aug. 1, 2026, allowing the attorney general to seek website removal and bank account freezes.
New York has the stronger hand so far. In July, a federal judge in Manhattan refused to block the state from enforcing its gambling laws against Kalshi's sports contracts and found that the Commodity Exchange Act did not preempt them, Predictable noted. The CFTC separately sued New York in April, seeking a ruling that federal law gives it exclusive authority. The pattern mirrors Utah's lawsuit and Polymarket's Ohio challenge: each state fight adds legal cost and uncertainty.
What's next
RG put Kalshi's federal lobbying spending so far this year at $1.79 million, as states push back. Watch for a response deadline in the New York case and for a Louisiana temporary restraining order request if the state moves first. If the court grants the Kalshi subpoena petition, the commission could use the records to calculate penalties for every sports contract sold in the state.
The filing details are summarized in RG's report on the petition, and the Kalshi subpoena petition is likely to be cited in other states weighing similar demands.
This article is for information only and is not investment advice.