New York asks judge to force Kalshi to hand over the names, wagers, and losses of its local bettors

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 affected customers and itemize their wagers, losses and the company’s gains. The state also seeks customer restitution, damages, disgorgement, prejudgment interest and costs.The most aggressive demands are a penalty equal to three times Kalshi’s alleged gains and $100,000 for each unauthorized offer or attempt to offer sports wagering or mobile sports wagering within or from New York.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’s potential exposure speculative.New York targets Kalshi’s operating modelAttorney General Letitia James brought the case under Executive Law Section 63(12), which allows the state to pursue alleged repeate...