Is Kalshi Legal in New York? Court Status and Every Gambling Lawsuit in New York

Status as of 14 November 2026: no court order stops Kalshi from offering event contracts to people in New York, and no court has ruled that it may; the state is suing and the courts have so far refused to stop it from enforcing.

• Rulings: S.D.N.Y. denied Kalshi's injunction on 7 July 2026 (the Westlaw citation reads 13 July 2026); the Second Circuit denied an injunction pending appeal on 3 November 2026.
• State suit: the Attorney General sued Kalshi on 31 July 2026; removed to federal court, no injunction.
• CFTC: emergency order of 11 August 2026 directs Kalshi to keep operating.
• Next dates: Supreme Court responses 7 December 2026; subpoena hearing 17 December per the court tracker, 14 December per CDC Gaming.

Ten steps in three courts and one agency; the S.D.N.Y. ruling of 7 July 2026 (Westlaw citation reads 13 July 2026) and the Second Circuit order of 3 November 2026 let New York enforce while the merits appeal is pending.

New York is the state suing the most prediction-market operators without yet holding an order against any of them: four Attorney General suits, a Gaming Commission subpoena proceeding and a CFTC suit against the state itself are all pending.

This page holds the court status and the 3 gambling lawsuits in our New York record. A complaint states one side's allegations; only the court's orders decide anything.

Is Kalshi legal in New York? What the courts have ordered

As of 14 November 2026 Kalshi offers sports and other event contracts in New York without a license from the New York State Gaming Commission, no court has ordered it to stop, and two federal courts have refused to stop New York from enforcing its gambling law against it.

The legal frame is the swaps question: Kalshi says the Commodity Exchange Act gives the CFTC exclusive jurisdiction over swaps on registered exchanges (7 U.S.C. 2(a)(1)(A)).

New York's record sits inside the national picture of gambling lawsuits in the United States, where each state's courts decide separately.

Kalshi v. Williams: the S.D.N.Y. ruling and the Second Circuit order of 3 November 2026

Kalshi sued first: after an October 2025 cease-and-desist from the Gaming Commission, KalshiEX LLC v. Williams was filed in the Southern District of New York on 27 October 2025 (1:25-cv-08846).

Judge Torres held that the Commodity Exchange Act does not preempt New York's gambling law as applied to Kalshi. The merits appeal is pending with no date. For the swaps question itself, see how is Kalshi legal.

People v. KalshiEX: the Attorney General's suit of 31 July 2026

The Attorney General sued KalshiEX LLC and Kalshi Inc. in the Supreme Court of the State of New York, New York County, on 31 July 2026 (Index No. 453272/2026), three weeks after Judge Torres's ruling.

The petition pleads Penal Law article 225 and Executive Law 63(12), and seeks a halt, restitution, disgorgement and treble gains, with a floor of at least USD 36 billion stated in the state's filings pending an accounting; a pleading, not a finding.

Kalshi removed the case to the S.D.N.Y. the same day (1:26-cv-06550); remand motion status is not confirmed in the court record. On 11 August 2026 the CFTC ordered Kalshi to keep operating.

On 22 October 2026 the Gaming Commission opened a subpoena proceeding (454547/2026), with a hearing on 17 December per the tracker or 14 December per CDC Gaming; the docket was not retrieved.

Polymarket US, Coinbase, Gemini and Novig in New York

Kalshi is one of four operators the Attorney General has sued: the Gemini and Coinbase suits came first, on 21 April 2026, and both were removed to federal court. Dates are per the court tracker.

• Gemini: 451603/2026, removed as 1:26-cv-03318; no ruling found.
• Coinbase: 451604/2026, removed as 1:26-cv-03300; no ruling found.
• Polymarket US: 454221/2026, filed 24 September 2026, removed the same day (1:26-cv-08338); no injunction; it remains available in New York.
• Novig: its own suit, 1:26-cv-06676, filed 5 August 2026; injunction denied 10 November 2026 in a ruling that sports event contracts are swaps; appeal No. 26-3263 filed 12 November; opinion not retrieved.

New York's prediction market lawsuits (1) are the largest state group in our record, among 7 nationwide; compare all prediction market lawsuits.

What happens next: the Second Circuit merits appeal, the CFTC case and the Supreme Court petitions

Three decisions could change this page, and none has a fixed date except the Supreme Court responses due 7 December 2026.

Follow all of them in pending appeals and high court gambling cases.

Open settlements covering New York residents

One consumer process covers New York residents as of 14 November 2026: VGW must redeem in cash the Sweeps Coins that New Yorkers held on 2 June 2025 and did not get the 2025 phase-out notice for, until 31 August 2027, under the Attorney General's Assurance of Discontinuance No. 26-052.

This is an administrative settlement, not a court case. VGW paid USD 8,000,000 to the state and nothing from it was distributed to players. The deadline is derived from paragraph 18, one year after the 31 August 2026 effective date, and no published request form or administrator has been located.

No class settlement is open to New Yorkers. The Pulsz six-state settlement covers Alabama, Tennessee, Kentucky, Ohio, New Jersey and Massachusetts only. Filing a claim in any settlement is free; we are not a law firm and not an administrator. Every window is in open gambling class action settlements by deadline.

Gambling lawsuits in New York: every case we track

Our record holds 3 gambling lawsuits in New York state and federal courts, among them 1 prediction market cases, 0 integrity prosecutions, 0 industry disputes, 0 sports betting suits and 1 sweepstakes casino suits, with further cases across other categories. Where a docket is not in the record the table says so.

The table is also available as a CSV, with stable ids and a change log, through our open data under a CC BY 4.0 license.

New York's loss-recovery statute and how it has been used

New York's loss-recovery statute is General Obligations Law 5-419 and 5-421 (with 5-411), and in our record it has been pleaded in five matters since 2025, none of which has produced a judgment or a payout. The wider list is in gambling loss recovery statutes by US state.

• Boatner v. SSPS: S.D.N.Y. 1:25-cv-03251; arbitration compelled 25 November 2025; appeal No. 26-1686.
• Ballentine v. Underdog Sports: E.D.N.Y. 1:25-cv-01106; stayed pending mediation since July 2025.
• Roberts v. McLuck: N.D.N.Y. 3:25-cv-01689; statutes as pleaded not confirmed from a primary document.
• Trinidad, Slovin and Martinez v. Kalshi: individual suits; Martinez discontinued 18 August 2026.
• The consolidated Kalshi class action: S.D.N.Y. 1:25-cv-08585, pleading the same statutes.

No New York court has awarded recovery under these sections in any case we track. That is an absence in our record, not a statement about New York law.

The main New York ruling against addiction-as-product-defect claims is De Leon v. DraftKings (S.D.N.Y. 1:25-cv-00644, Judge Cote), dismissed on 11 December 2025; whether with prejudice is not confirmed. For players' routes, see can you sue a casino or sportsbook.

Sweepstakes casino status in New York

New York banned dual-currency sweepstakes casinos by statute with effect from 5 December 2025 (chapter 605 of 2025, S5935A), per the Settlement Insight list, which we have not yet checked against the chaptered law.

VGW had already stopped Sweeps Coins for New Yorkers on 2 June 2025, after the Attorney General's letter of 25 April 2025.

Boatner (arbitration compelled) and Roberts v. McLuck (pending) are the court cases on point. A RICO suit against VGW, Apple and Google was filed in the S.D.N.Y. on 3 December 2024; its docket, caption and every later step are not confirmed in the court record. See sweepstakes casino bans by state.

State enforcement: Attorney General and Gaming Commission cases

New York enforces through three routes: the Attorney General sues under Executive Law 63(12) and the Penal Law, the Gaming Commission issues cease-and-desist letters and subpoenas, and federal prosecutors in Brooklyn charge betting-integrity cases.

The Gaming Commission's USD 17,500,000 settlement with Underdog of March 2025 was a regulatory settlement, not a court case. The national pattern is in regulators and attorneys general in court.

Attorney General suits and the Valve loot box case

2 Attorney General matters sit in our record for New York, from the 2015 daily fantasy suits to the 2026 prediction-market and loot box cases.

Federal prosecutions in Brooklyn: NBA and MLB betting cases

Four Eastern District of New York prosecutions put sports-betting integrity before the courts: the Porter case (pleaded guilty 10 July 2024), the Rozier and Billups indictments unsealed 23 October 2025, and the Clase and Ortiz pitch-rigging case, whose trial began 2 November 2026.

Defendants who are charged but not convicted are presumed innocent. The wider set of these prosecutions is in match fixing and betting integrity cases.

Courts and where to find the dockets

New York gambling litigation runs through state and federal courts and two agencies, and most state-court filings are on NYSCEF while the federal orders are on GovInfo or hosted by press.

Compare other states in gambling lawsuits by US state.

New York is both a plaintiff state against Kalshi and a defendant in the CFTC's suit; see states suing Kalshi and states sued by the CFTC for the matrix.

Questions people ask

Is Kalshi illegal gambling in New York?

No court has decided whether Kalshi is illegal gambling in New York; two courts have refused to stop the state from trying to prove it. The federal question is covered in CFTC jurisdiction vs state gambling law.

Why is New York suing Kalshi?

The Attorney General alleges Kalshi runs an unlicensed gambling operation open to 18-year-olds, in a suit filed 31 July 2026; that is the state's allegation, not a finding. Read the case page, New York v. Kalshi.

Can New Yorkers still redeem Chumba Casino Sweeps Coins?

Only New Yorkers who held Sweeps Coins on 2 June 2025 and did not get the phase-out notice can ask VGW to redeem them in cash, until 31 August 2027 (derived from paragraph 18); no published request form was located. See the New York Attorney General VGW assurance of discontinuance.

Is there a Kalshi class action or payout?

No Kalshi case has produced a payout and no class is certified as of 14 November 2026. The consolidated class action In re Kalshi Sports Prediction Market Litigation (S.D.N.Y. 1:25-cv-08585, Judge Rochon) has no settlement. See all Kalshi lawsuits.

Where to find the other states

• New Jersey's injunction protects Kalshi: is Kalshi legal in New Jersey.
• Nevada blocked sports contracts by court order: is Kalshi legal in Nevada.
• Every state in one list: is Kalshi legal? court status in every state.

Out of scope on this page

This page covers court cases only, so it does not answer:

• Whether Kalshi is a good product, or how to use any operator.
• Casino locations, odds or tax advice.

Last checked 14 November 2026. Next scheduled check: 7 December 2026 (Supreme Court responses; Gaming Commission subpoena dates). How every case on this page is sourced and checked.