Is Kalshi legal in New York? The Gaming Commission order, the Attorney General's lawsuit and the Second Circuit appeal
New York's Gaming Commission ordered Kalshi to cease and desist on 24 October 2025, a federal judge denied Kalshi an injunction against the state on 7 July 2026, and the Attorney General sued Kalshi in state court on 31 July 2026. Kalshi's appeal, Second Circuit No. 26-1835, was in briefing with New York's brief due 30 October 2026, and its Member Agreement names no US state as restricted.
Is Kalshi legal in New York? The state says no. The New York State Gaming Commission ordered Kalshi to cease and desist on 24 October 2025, a federal judge refused to block that order on 7 July 2026, and the Attorney General sued Kalshi in state court on 31 July 2026. Kalshi's appeal was in briefing on the last docket update read, and its own terms name no US state as restricted.
Documents read on 27 October 2026: Kalshi's Member Agreement and help centre, the Gaming Commission's letter, the Attorney General's release and petition, two orders from the federal case in Manhattan, the Second Circuit docket and the states' Supreme Court amicus brief. This is not legal advice.
Does Kalshi allow New York users?
Its terms do not exclude New York. Section VI of the Member Agreement bars trading for anyone located in a jurisdiction "in which trading Event Contracts on the Platform is prohibited under Applicable Law or by Kalshi policy", and lists countries and sanctioned territories. No US state is named. The help centre article on signing up, dated 10 March 2026, asks a user to "Be 18 years or older". The Member Agreement itself, by Section XX, "will be governed by the laws of the State of New York."
Whether Kalshi blocks any contracts for users located in New York was not stated in any Kalshi document read: not verified.
What has New York done against Kalshi?
Two state actions and Kalshi's federal suit, each from the agency or court record:
| Date | Action | Source |
|---|---|---|
| 24 Oct 2025 | Gaming Commission cease-and-desist letter | Commission letter |
| 27 Oct 2025 | Kalshi sues the Commission, S.D.N.Y. No. 25-cv-08846 | AG petition, para. 31 |
| 7 Jul 2026 | Kalshi's preliminary injunction denied | S.D.N.Y. Doc. 107, 2d Cir. docket |
| 27 Jul 2026 | Injunction pending appeal denied | S.D.N.Y. Doc. 113 |
| 29 Jul 2026 | Second Circuit denies a temporary injunction | 2d Cir. docket |
| 31 Jul 2026 | Attorney General sues Kalshi in state court | AG release and petition |
Our laws protect New Yorkers from illegal and predatory gambling. Kalshi chose to ignore them. Now they’re being held accountable.
The Commission's letter, signed by executive director Robert Williams, says "the Commission demands that Kalshi cease and desist immediately from illegally operating" and cites Racing Law section 1367-a(4)(b): "No entity shall directly or indirectly operate an unlicensed sports wagering platform in the state of New York". The Attorney General's petition says the Commission agreed on 28 October 2025 not to enforce while Kalshi's injunction request was pending.
The Attorney General's case was filed in the Supreme Court of the State of New York, County of New York, under Executive Law section 63(12). The release says New York "has sued KalshiEX, LLC (Kalshi) for running an illegal gambling operation" and asks that Kalshi "pay fines, forfeit all illegal gains, and pay restitution to users", with "fines equal to three times the gains". The petition alleges that users aged 18 to 20 can trade on Kalshi, below New York's age of 21 for sports wagering. These are the Attorney General's allegations; no ruling on them was found. The copy of the petition on the Attorney General's site shows no index number, so its docket status is not verified.
What does New York law say about sports wagering?
Gambling is banned except where the constitution allows it, and mobile sports betting needs a Gaming Commission licence. The petition quotes Article I, section 9 of the state constitution and the Penal Law definition:
A person "engages in gambling when he stakes or risks something of value upon the outcome of a contest of chance or a future contingent event not under his control or influence, upon an agreement or understanding that he will receive something of value in the event of a certain outcome."
Mobile sports wagering is licensed under Racing Law sections 1367 and 1367-a. The petition says New York has nine mobile sports licensees and that a "minor" for sports wagering is anyone under 21. The Commission approved the first four mobile operators on 6 January 2022; the New York state page has that record.
Where does the federal case stand?
Kalshi lost the first round and is appealing. Judge Analisa Torres denied its preliminary injunction on 7 July 2026, and on 27 July refused an injunction pending appeal. Her order of 27 July says:
Second, Plaintiff cannot make a "strong showing" that it is likely to succeed on the merits.
.@Kalshi tried to get out of following our laws in New York. They lost in court.@GovKathyHochul and I will continue to hold all gambling platforms accountable — including prediction markets.
In the Second Circuit, No. 26-1835, the court denied a temporary injunction on 29 July 2026 and referred the motion to a three-judge panel. Kalshi filed its brief on 31 August. The CFTC filed an amicus brief on 8 September 2026. The court has ordered the appeal heard in tandem with Nos. 26-2297 and 26-2239. New York's brief was due 30 October 2026 on the last docket update read, dated 10 September 2026. No argument date or decision was shown: not verified after that date.
Attorney General Letitia James also signed the 39-state amicus brief asking the Supreme Court to hear New Jersey's case against Kalshi, No. 26-299, where Kalshi's response is due 9 November 2026. The circuit split behind that petition is set out in Is Kalshi gambling?
What happens to a New York user's account and money?
Kalshi's documents do not address New York separately. What they say for every member:
- Access. Section VI lets Kalshi "grant, deny, condition, suspend, or revoke membership" at its "sole and absolute discretion".
- Withdrawals. Section VI(J): within 90 days of an ACH deposit, "those funds may only be withdrawn to the external account" they came from.
- Termination. Section XIII: "Termination of this Agreement will not affect liability accrued as of termination."
- Open positions if a court orders Kalshi to stop in New York: not disclosed.
The Attorney General asks for restitution to users. Whether any is ordered depends on a ruling that had not been made on 27 October 2026. Tax treatment is in Kalshi and Polymarket taxes, and fees in Polymarket vs Kalshi. Other states are in the Kalshi state guide, including Nevada, where a state court order is already in force.
Quick answers
Is Kalshi banned in New York?
No court has ordered it out yet. The Gaming Commission demanded it stop on 24 October 2025, and the Attorney General's suit of 31 July 2026 asks a state court to stop it.
Did Kalshi win its case against New York?
No. A federal judge denied it a preliminary injunction on 7 July 2026. Its appeal, Second Circuit No. 26-1835, was in briefing with New York's brief due 30 October 2026.
What does New York want from Kalshi?
An order stopping it, restitution to users and fines equal to 3 times its gains, per the Attorney General's release of 31 July 2026.
Can 18-year-olds use Kalshi in New York?
Kalshi's help centre sets 18 as the minimum. New York sets 21 for sports wagering, and the Attorney General alleges 18 to 20 year olds trade on Kalshi.
Where can I get help with gambling in New York?
New York's HOPEline is 1-877-8-HOPENY (467369), or text HOPENY. The National Problem Gambling Helpline is 1-800-MY-RESET (1-800-697-3738), with call, text and chat. More options are on the responsible gambling page.
Sources
- Kalshi Member Agreement, undated PDF, Sections VI, XIII and XX, retrieved 27 October 2026
- Kalshi Help Center, Signing Up as an Individual, dated 10 March 2026, retrieved 27 October 2026
- New York State Gaming Commission, letter to KalshiEX LLC, 24 October 2025, retrieved 27 October 2026
- New York Attorney General press release, New York has sued Kalshi, 31 July 2026, retrieved 27 October 2026
- People of the State of New York v. KalshiEX LLC, Supreme Court of the State of New York, County of New York, verified petition, 31 July 2026, retrieved 27 October 2026
- KalshiEX LLC v. Williams, S.D.N.Y. No. 1:25-cv-08846-AT, notice of appeal, Document 107, 7 July 2026, CourtListener RECAP, retrieved 27 October 2026
- KalshiEX LLC v. Williams, S.D.N.Y. No. 1:25-cv-08846-AT, order denying injunction pending appeal, Document 113, 27 July 2026, CourtListener RECAP, retrieved 27 October 2026
- KalshiEX LLC v. Williams, 2d Cir. No. 26-1835, docket summary (last updated 10 September 2026), retrieved 27 October 2026
- Brief of amici curiae Ohio, 38 other states and the District of Columbia, No. 26-299, October 2026, retrieved 27 October 2026
- Flaherty v. KalshiEX LLC, US Supreme Court No. 26-299, docket, retrieved 27 October 2026
- New York State Gaming Commission, approval of the first mobile sports wagering operators, 6 January 2022, retrieved 27 October 2026
- New York State OASIS, HOPEline, retrieved 27 October 2026
- National Council on Problem Gambling, National Problem Gambling Helpline, retrieved 27 October 2026
About this piece
Compiled by the CryptoGuardz register team from the sources listed above. Research and drafting are AI-assisted and reviewed by a named editor before publication. Nothing here is a recommendation to gamble. If a figure or a reading is wrong, tell us and the correction is logged in public.