TLDR New York AG Letitia James filed a petition asking a court to enforce a September 25 subpoena against Kalshi. The subpoena seeks records on influencer marketing, internal policies, proprietary trading, and incentive programs. Kalshi missed the October 5 deadline and moved to quash the subpoena on October 30. Kalshi argues the subpoena covers issues already part of the state’s enforcement case. If the court grants the petition, Kalshi would have 10 days to produce the documents.
New York Attorney General Letitia James wants a court to force Kalshi to hand over records on how it pays influencers, runs its own trades, and rewards active traders. The request came in a petition filed in the state’s ongoing legal fight with the prediction market.
The petition asks the court to enforce a subpoena that James’s office sent to Kalshi on September 25. The company has not produced the documents the state requested.
The core dispute is about who should regulate Kalshi. New York says the company runs an unlicensed gambling business that falls under state law.
Kalshi says its event contracts are not gambling. It argues they fall under the Commodity Futures Trading Commission, the federal regulator for derivatives.
In July, a federal judge denied Kalshi’s request for a preliminary injunction against state officials. Kalshi appealed to the US Court of Appeals for the Second Circuit, which also denied an injunction pending appeal.
The day after that denial, James’s office sued Kalshi in state court. Kalshi quickly moved the case to federal court.
The CFTC has also entered the dispute. It filed its own lawsuit against New York and issued an emergency order requiring Kalshi to keep offering its contracts in the state, despite possible state enforcement.
New York has also gone after Polymarket. In late September, James’s