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New York seeks to block Kalshi from unlicensed sports wagering in state
New York’s July 31 petition asks the court to require Kalshi to disclose local bettors, itemize wagers, losses and company gains, and pursue penalties up to three times alleged gains plus $100,000 per unauthorized offer.
New York has asked a Manhattan state court to permanently bar prediction-market exchange Kalshi from offering what the state says is unlicensed sports wagering to people in New York, as the dispute continues over whether federal oversight protects the platform from state gambling laws, according to a CryptoSlate report.
In a verified petition dated July 31, the state also requested disclosure from Kalshi, including identifying affected customers and itemizing wagers, losses, and the company’s gains. New York further sought customer restitution, damages, disgorgement, prejudgment interest, and costs, while noting that the court has not yet found Kalshi liable or awarded any money.
The petition lays out the most aggressive remedies as requested, including a penalty equal to three times Kalshi’s alleged gains and $100,000 for each unauthorized offer or attempt to offer sports wagering, including mobile sports wagering, within or from New York. CryptoSlate reports that the filing does not provide an adjudicated gain figure or a count of covered offers, making any total exposure speculative at this stage.
The case stems from a July 7 denial by the U.S. District Court for the Southern District of New York of Kalshi’s request for temporary and preliminary protection from state enforcement. CryptoSlate reports that New York brought the case under Executive Law Section 63(12) and cited a prior October 2025 cease-and-desist demand from the New York State Gaming Commission over alleged unlicensed mobile sports wagering.