State v. operator
People of the State of New York, by Letitia James v. KalshiEX LLC
U.S. District Court for the Southern District of New York (removed from N.Y. Supreme Court, New York County), 1:26-cv-06550
Pending
Removed the day it was filed; New York's remand motion is fully briefed and undecided; no preliminary relief entered.
The question
Whether New York's enforcement suit belongs in federal or state court, and whether New York gambling law can be applied to the operator's event contracts.
New York's Attorney General alleges Kalshi runs unlicensed gambling, including wagers on New York college teams and by under-21 users, and seeks disgorgement and restitution. Kalshi removed the petition and accompanying TRO request to federal court the same day.
Docket timeline
In a separate federal action (United States v. State of New York), Judge Jed S. Rakoff denies the CFTC's emergency TRO request to halt New York's suit against Kalshi, without prejudice (reported Aug. 4, 2026).
Source: cointelegraph.com
Petition filed in state court and removed the same day.
Source: dockets.justia.com
Sources
- Justia docket: People v. KalshiEX, S.D.N.Y. 1:26-cv-06550
- ABC7 New York: New York sues Kalshi (2026-07-31)
- Vultax prediction market lawsuit tracker (updated 2026-10-19)
- Cointelegraph: NY judge denies CFTC motion to halt enforcement action against Kalshi (2026-08-04)
- SBC Americas: New York blasts CFTC for 'irrelevant' emergency Kalshi order (2026-09-03)