New York state investigators have issued document subpoenas to Kalshi seeking records tied to sports-event contracts, including transactions involving people under the age of 21, according to copies of the subpoenas and information shared by legal analyst Daniel Wallach.
The subpoenas, directed to Kalshi Inc. and KalshiEX LLC by the New York State Gaming Commission, require the companies to turn over records connected to an investigation into Kalshi’s operation as a platform for Sports Products. The documents request production as soon as possible and no later than August 14, 2026.
According to Wallach, the requests are limited to sports-event contracts and do not seek information about any other category of event contracts. He also said the subpoenas seek details of transactions involving persons “under the age of 21.”
Wallach wrote, “New York issues document subpoenas to Kalshi seeking details of transactions involving sports-event contracts and persons ‘under the age of 21.’ Subpoenas do not seek details of any other category of event contracts, just sports. First government subpoena directed at Kalshi.”
Subpoenas deepen New York case against Kalshi
The subpoenas cite Section 104(7) of the Racing, Pari-Mutuel Wagering and Breeding Law as the basis for the investigation. They also include broad definitions covering communications, the Commodity Futures Trading Commission, the New York State Gaming Commission and Kalshi’s corporate structure, including affiliated entities, owners and controlling interests.
Wallach linked the subpoenas to Kalshi’s recent procedural move in court.
“One reason why Kalshi quickly removed New York State’s civil enforcement lawsuit to federal court–it was served with subpoenas from state investigators seeking documents concerning its corporate structure, stock ownership and ‘Sports Product’ offerings no later than August 14th,” Wallach wrote.
The investigation comes days after New York sued Kalshi, alleging the company operates an unlicensed gambling business by offering contracts tied to sports, elections and other events without a state gaming license. Governor Kathy Hochul and Attorney General Letitia James argue the contracts violate New York gambling laws and have asked the court to permanently block the platform, requiring restitution, disgorgement of alleged profits, customer accounting and civil penalties.
“Kalshi has chosen to ignore New York’s gaming laws, which exist to protect consumers, prevent problematic gambling, deliver funding for critical public services, and ensure that every company plays by the same rules,” Hochul said in a statement.
“New York’s gambling laws protect children from underage betting and help combat gambling addiction,” James said. “No matter what they call themselves, prediction markets like Kalshi are gambling platforms, plain and simple. By ignoring our laws, Kalshi is running an illegal operation and harming New Yorkers in the process. We are taking them to court to uphold our laws and protect New Yorkers.”
Kalshi removed the case to federal court on July 31. A New York judge later ruled the state’s request for immediate injunctive relief was moot because of the removal, leaving the federal court to decide the next steps while the Gaming Commission’s investigation continues.
Featured image: Kalshi / Canva
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