New York court petition seeks Kalshi's customer data and penalties

New York has filed a petition in Manhattan state court to block prediction-market exchange Kalshi from offering unlicensed sports wagering to New Yorkers. The petition, dated July 31, requests the court to compel Kalshi to disclose customer identities, wagers, losses, and the company's profits. New York is also seeking restitution, damages, disgorgement, prejudgment interest, and costs. The state demands penalties equal to three times Kalshi's alleged gains and 100000 dollars for each unauthorized sports wagering attempt within or from New York. Attorney General Letitia James claims violations of New York's gambling laws and the federal Wire Act. Kalshi's reported valuation is 22 billion dollars with an annualized transaction volume of 178 billion dollars. This case follows a cease-and-desist order from the New York State Gaming Commission regarding unlicensed mobile sports wagering. Kalshi has previously sued state officials, asserting its federal regulatory status preempts state laws. On July 7, a U.S. District Court denied Kalshi's request for temporary protection from state enforcement. Kalshi's spokesperson criticized the lawsuit as political theater, asserting that states cannot shut down a federally licensed exchange. The outcome of this legal dispute will determine Kalshi's ability to operate in New York.

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