{"id":11386,"date":"2026-08-02T14:16:06","date_gmt":"2026-08-02T14:16:06","guid":{"rendered":"https:\/\/cryptonews.uk.com\/?p=11386"},"modified":"2026-08-02T14:16:06","modified_gmt":"2026-08-02T14:16:06","slug":"new-york-asks-judge-to-force-kalshi-to-hand-over-the-names-wagers-and-losses-of-its-local-bettors","status":"publish","type":"post","link":"https:\/\/cryptonews.uk.com\/?p=11386","title":{"rendered":"New York asks judge to force Kalshi to hand over the names, wagers, and losses of its local bettors"},"content":{"rendered":"<p><\/p>\n<div>\n<p>New York has asked a Manhattan state court to permanently block prediction-market exchange Kalshi from offering what the state calls unlicensed sports wagering to New Yorkers, escalating a fight over whether federal commodities oversight shields the platform from state gambling laws.<\/p>\n<p>A verified petition dated July 31 asks the court to order Kalshi to identify affected customers and itemize their wagers, losses and the company\u2019s gains. The state also seeks customer restitution, damages, disgorgement, prejudgment interest and costs.<\/p>\n<p>The most aggressive demands are a penalty equal to three times Kalshi\u2019s alleged gains and $100,000 for each unauthorized offer or attempt to offer sports wagering or mobile sports wagering within or from New York.<\/p>\n<p>Those remedies have only been requested. The court has not found Kalshi liable or awarded New York any money, and the petition provides neither an adjudicated gain figure nor a count of covered offers. That makes any aggregate estimate of Kalshi\u2019s potential exposure speculative.<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-551554\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/08\/exec-a1f5c9f5-f18b-4bae-b189-1910c25f784a.png\" alt=\"Infographic summarizing New York\u2019s requested remedies against Kalshi: an injunction, accounting, restitution, a triple-gains penalty and $100,000 per unauthorized offer, none yet awarded.\" width=\"720\" height=\"900\"\/><img decoding=\"async\" class=\"lazyload aligncenter wp-image-551554\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/08\/exec-a1f5c9f5-f18b-4bae-b189-1910c25f784a.png\" alt=\"Infographic summarizing New York\u2019s requested remedies against Kalshi: an injunction, accounting, restitution, a triple-gains penalty and $100,000 per unauthorized offer, none yet awarded.\" width=\"720\" height=\"900\"\/><\/p>\n<div class=\"cs-article-embed\">\n<div class=\"cs-article-embed__media\"> <img loading=\"lazy\" width=\"1024\" height=\"576\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/07\/prediction-markets-state-restrictions-court-ruling-1024x576.jpg\" alt=\"Kalshi court loss shows federal approval cannot erase state barriers\" loading=\"lazy\" decoding=\"async\"\/><img loading=\"lazy\" class=\"lazyload\" width=\"1024\" height=\"576\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/07\/prediction-markets-state-restrictions-court-ruling-1024x576.jpg\" alt=\"Kalshi court loss shows federal approval cannot erase state barriers\" loading=\"lazy\" decoding=\"async\"\/><\/div>\n<div class=\"cs-article-embed__body\"> <span class=\"cs-article-embed__related-reading\">Related Reading<\/span><\/p>\n<h3 class=\"cs-article-embed__title\">Kalshi court loss shows federal approval cannot erase state barriers<\/h3>\n<p>The ruling gives New York room to press sports-event enforcement while the CFTC is still writing national rules.<\/p>\n<p> <span class=\"cs-article-embed__meta-item\">Jul 9, 2026<\/span> <span class=\"cs-article-embed__meta-divider\">\u00b7<\/span> <span class=\"cs-article-embed__meta-item\">Liam &#8216;Akiba&#8217; Wright<\/span><\/p>\n<\/div><\/div>\n<h2>New York targets Kalshi\u2019s operating model<\/h2>\n<p>Attorney General Letitia James brought the case under Executive Law Section 63(12), which allows the state to pursue alleged repeated or persistent illegality.<\/p>\n<p>The petition advances eight theories. It alleges violations of New York\u2019s constitutional gambling prohibition, three state Penal Law provisions, three Racing Law provisions and the federal Wire Act.<\/p>\n<div class=\"cs-article-embed\">\n<div class=\"cs-article-embed__media\"> <img loading=\"lazy\" width=\"1024\" height=\"683\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/04\/washington-prediction-market-1024x683.jpg\" alt=\"CFTC sues 3 states in bid to redefine crypto prediction markets as federal products\" loading=\"lazy\" decoding=\"async\"\/><img loading=\"lazy\" class=\"lazyload\" width=\"1024\" height=\"683\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/04\/washington-prediction-market-1024x683.jpg\" alt=\"CFTC sues 3 states in bid to redefine crypto prediction markets as federal products\" loading=\"lazy\" decoding=\"async\"\/><\/div>\n<div class=\"cs-article-embed__body\"> <span class=\"cs-article-embed__related-reading\">Related Reading<\/span><\/p>\n<h3 class=\"cs-article-embed__title\">CFTC sues 3 states in bid to redefine crypto prediction markets as federal products<\/h3>\n<p>Federal lawsuits aim to override state gambling laws, putting the future of sports prediction markets on a fast legal track.<\/p>\n<p> <span class=\"cs-article-embed__meta-item\">Apr 3, 2026<\/span> <span class=\"cs-article-embed__meta-divider\">\u00b7<\/span> <span class=\"cs-article-embed__meta-item\">Gino Matos<\/span><\/p>\n<\/div><\/div>\n<p>The filing also points to Kalshi\u2019s scale, citing a $22 billion valuation and $178 billion in annualized transaction volume. Both numbers came from Kalshi\u2019s May fundraising announcement; they are company-reported metrics, not audited findings by New York and not a measure of what the state could recover.<\/p>\n<div id=\"cs-inline-newsletter-6a6f469ce67e7\" class=\"cs-inline-newsletter\" data-inline-newsletter=\"\">\n<div class=\"cs-inline-newsletter__inner\">\n<div class=\"cs-inline-newsletter__content\"> <span class=\"cs-inline-newsletter__eyebrow\">CryptoSlate Daily Brief<\/span><\/p>\n<h3 class=\"cs-inline-newsletter__title\">Daily signals, zero noise.<\/h3>\n<p class=\"cs-inline-newsletter__copy\">Market-moving headlines and context delivered every morning in one tight read.<\/p>\n<p> <span><i class=\"fa-regular fa-bolt\" aria-hidden=\"true\"\/> 5-minute digest<\/span> <span><i class=\"fa-regular fa-star\" aria-hidden=\"true\"\/> 100k+ readers<\/span><\/p>\n<\/div>\n<div class=\"cs-inline-newsletter__form-shell\">\n<p class=\"cs-inline-newsletter__privacy\">Free. No spam. Unsubscribe any time.<\/p>\n<p> <i class=\"fa-regular fa-circle-xmark\" aria-hidden=\"true\"\/> <span>Whoops, looks like there was a problem. Please try again.<\/span><\/p>\n<p> <i class=\"fa-regular fa-circle-check\" aria-hidden=\"true\"\/> <span>You\u2019re subscribed. Welcome aboard.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<p>The case follows an October 2025 cease-and-desist demand from the New York State Gaming Commission over alleged unlicensed mobile sports wagering. Kalshi responded by suing state officials in federal court, arguing that its status as a federally regulated exchange preempts state enforcement.<\/p>\n<div class=\"cs-article-embed\">\n<div class=\"cs-article-embed__media\"> <img loading=\"lazy\" width=\"1024\" height=\"538\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/01\/tennessee-cftc-1024x538.jpg\" alt=\"Kalshi and Polymarket face a \u201csports gambling\u201d probe that could void your trades and shut down the market\" loading=\"lazy\" decoding=\"async\"\/><img loading=\"lazy\" class=\"lazyload\" width=\"1024\" height=\"538\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/01\/tennessee-cftc-1024x538.jpg\" alt=\"Kalshi and Polymarket face a \u201csports gambling\u201d probe that could void your trades and shut down the market\" loading=\"lazy\" decoding=\"async\"\/><\/div>\n<div class=\"cs-article-embed__body\"> <span class=\"cs-article-embed__related-reading\">Related Reading<\/span><\/p>\n<h3 class=\"cs-article-embed__title\">Kalshi and Polymarket face a \u201csports gambling\u201d probe that could void your trades and shut down the market<\/h3>\n<p>Prediction markets say they\u2019re federally regulated finance; Tennessee says they\u2019re unlicensed sports betting.<\/p>\n<p> <span class=\"cs-article-embed__meta-item\">Jan 17, 2026<\/span> <span class=\"cs-article-embed__meta-divider\">\u00b7<\/span> <span class=\"cs-article-embed__meta-item\">Andjela Radmilac<\/span><\/p>\n<\/div><\/div>\n<p>On July 7, the U.S. District Court for the Southern District of New York denied Kalshi\u2019s request for temporary and preliminary protection from state enforcement. The judge found that all four factors governing preliminary relief weighed against the company.<\/p>\n<p>That ruling was an interim decision, not a final judgment on Kalshi\u2019s preemption claims. Kalshi opened an interlocutory appeal in the Second Circuit on July 8, leaving the broader federal dispute unresolved while New York presses its separate state action.<\/p>\n<p>Kalshi spokesperson Elisabeth Diana called New York\u2019s lawsuit \u201cpolitical theater\u201d and said in a statement reported by the Associated Press that states cannot shut down a federally licensed exchange. That is the company\u2019s position; the state petition asks a court to reach the opposite practical result for Kalshi\u2019s New York operations.<\/p>\n<p>For now, Kalshi\u2019s ability to keep serving New Yorkers is a contested legal question. The immediate risk is concrete: New York is seeking an order that would stop the activity, force a detailed accounting, and attach potentially large penalties to conduct the state alleges was unauthorized.<\/p>\n<\/div>\n<p>Featured,Legal,Regulation#York #asks #judge #force #Kalshi #hand #names #wagers #losses #local #bettors1785680166<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York has asked a Manhattan state court to permanently block prediction-market exchange Kalshi from offering what the state calls unlicensed sports wagering to New Yorkers, escalating a fight over whether federal commodities oversight shields the platform from state gambling laws. A verified petition dated July 31 asks the court to order Kalshi to identify<\/p>\n","protected":false},"author":1,"featured_media":11387,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[5857,4980,1800,5206,645,1384,3983,653,2279,2989,1199],"class_list":["post-11386","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ethereum","tag-asks","tag-bettors","tag-force","tag-hand","tag-judge","tag-kalshi","tag-local","tag-losses","tag-names","tag-wagers","tag-york"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.6 (Yoast SEO v26.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>New York asks judge to force Kalshi to hand over the names, wagers, and losses of its local bettors - Crypto News: Latest Cryptocurrency News and Analysis<\/title>\n<meta name=\"description\" content=\"A New York lawsuit against Kalshi seeks to halt sports prediction markets and impose $100,000 penalties per unauthorized offer.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptonews.uk.com\/?p=11386\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New York asks judge to force Kalshi to hand over the names, wagers, and losses of its local bettors\" \/>\n<meta property=\"og:description\" content=\"A New York lawsuit against Kalshi seeks to halt sports prediction markets and impose $100,000 penalties per unauthorized offer.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptonews.uk.com\/?p=11386\" \/>\n<meta property=\"og:site_name\" content=\"Crypto News: Latest Cryptocurrency News and Analysis\" \/>\n<meta property=\"article:published_time\" content=\"2026-08-02T14:16:06+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptonews.uk.com\/wp-content\/uploads\/2026\/08\/new-york-attorney-general-strikes-kalshi-office.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"720\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"\u884c\u653f\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"\u884c\u653f\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/cryptonews.uk.com\/?p=11386\",\"url\":\"https:\/\/cryptonews.uk.com\/?p=11386\",\"name\":\"New York asks judge to force Kalshi to hand over the names, wagers, and losses of its local bettors - Crypto News: Latest Cryptocurrency News and Analysis\",\"isPartOf\":{\"@id\":\"https:\/\/cryptonews.uk.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/cryptonews.uk.com\/?p=11386#primaryimage\"},\"image\":{\"@id\":\"https:\/\/cryptonews.uk.com\/?p=11386#primaryimage\"},\"thumbnailUrl\":\"https:\/\/cryptonews.uk.com\/wp-content\/uploads\/2026\/08\/new-york-attorney-general-strikes-kalshi-office.jpg\",\"datePublished\":\"2026-08-02T14:16:06+00:00\",\"author\":{\"@id\":\"https:\/\/cryptonews.uk.com\/#\/schema\/person\/822778c5844e0d16d43dce6630f4f1bf\"},\"description\":\"A New York lawsuit against Kalshi seeks to halt sports prediction markets and impose $100,000 penalties per unauthorized offer.\",\"breadcrumb\":{\"@id\":\"https:\/\/cryptonews.uk.com\/?p=11386#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/cryptonews.uk.com\/?p=11386\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/cryptonews.uk.com\/?p=11386#primaryimage\",\"url\":\"https:\/\/cryptonews.uk.com\/wp-content\/uploads\/2026\/08\/new-york-attorney-general-strikes-kalshi-office.jpg\",\"contentUrl\":\"https:\/\/cryptonews.uk.com\/wp-content\/uploads\/2026\/08\/new-york-attorney-general-strikes-kalshi-office.jpg\",\"width\":1280,\"height\":720},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/cryptonews.uk.com\/?p=11386#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/cryptonews.uk.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"New York asks judge to force Kalshi to hand over the names, wagers, and losses of its local bettors\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/cryptonews.uk.com\/#website\",\"url\":\"https:\/\/cryptonews.uk.com\/\",\"name\":\"Crypto News: Latest Cryptocurrency News and Analysis\",\"description\":\"Latest Crypto &amp; 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