Vardan Khachatryan
Kalshi in New York
Contested for all event contracts, with no restriction in force.
- Sports contracts
- Available, but contested
- Other contracts
- Available
- Regulator
- CFTC: a designated contract market (DCM) and derivatives clearing organization
- Rulings and actions in New York
- 2 on record, listed in the timeline
- Legal sports betting
- Mobile since January 8, 2022, through nine licensed apps
- Minimum age
- 18 on Kalshi; 21 at New York sportsbooks
- Federal appeals court
- Second Circuit: has not ruled on the question
- Last change
- September 3, 2026
Each entry on this page links the ruling or report it rests on. Nothing here is legal advice.
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Why Kalshi is legal in New York
Kalshi is a federally regulated exchange. The CFTC designated it a contract market in 2020, the same status futures exchanges hold.
That, Kalshi argues, is why it needs no New York gaming license. In its view, only the CFTC can police its contracts.
New York disagrees, and it is fighting on three fronts. Its Gaming Commission, its attorney general and its governor all call Kalshi illegal gambling.
None of them has an order in force yet. Kalshi still lists every category in New York, sports included.
Legal today is not the same as settled. A federal judge in Manhattan has already sided with the state.
What you can trade on Kalshi from New York
Everything Kalshi lists: sports, politics, economics, crypto, culture and weather. You must be 18 or over and pass its ID checks.
That age is part of the fight. New York sportsbooks take bets only from adults 21 and over. The state says Kalshi lets 18- to 20-year-olds trade.
Sports is the biggest draw. Kalshi lists NFL, NBA, MLB and NHL markets, so the Yankees, Mets, Knicks, Rangers and Bills all trade here.
Politics is close behind. Governor Kathy Hochul faces Republican Bruce Blakeman on November 3, 2026, and Kalshi lists the race.
How Kalshi works for New York traders
Every Kalshi contract is a yes-or-no question. It pays $1 if the answer is yes and nothing if it is no.
The price is the market's odds. A contract at 60¢ means traders put the chance at about 60%.
Say the Yankees are 60¢ to win tonight. You buy 100 contracts for $60. Kalshi's standard fee on that trade is $1.68.
If the Yankees win, you collect $100, a $38.32 profit. If they lose, you are out $61.68.
You trade against other people, not the house. That is Kalshi's core argument in court: it runs an exchange, not a sportsbook.
The fee is highest near 50¢ and shrinks toward either end. Our Kalshi fees guide has the full schedule.
What New York has said about Kalshi
On October 24, 2025, the Gaming Commission ordered Kalshi to stop. Executive Director Robert Williams called Kalshi an unlicensed mobile sports wagering platform.
Attorney General Letitia James went further when she sued on July 31, 2026.
“No matter what they call themselves, prediction markets like Kalshi are gambling platforms, plain and simple,” she said.
Governor Kathy Hochul joined the suit's announcement. Kalshi “has chosen to ignore New York's gaming laws,” she said.
Kalshi is not the only target. The state sued Coinbase and Gemini in April 2026, and Polymarket US on September 24.
New York's lawsuits against Kalshi, explained
There are two main cases, one brought by each side. Both now sit in federal court in Manhattan.
Kalshi moved first. Three days after the Gaming Commission's letter, it sued the Commission's officials in KalshiEX LLC v. Williams, No. 1:25-cv-08846.
It lost the first round. On July 7, 2026, Judge Analisa Torres refused to block New York from enforcing its law.
Her core finding was plain. New York's gambling laws, applied to Kalshi's sports contracts, “are not preempted by the CEA,” she wrote.
She later refused to pause that ruling. The Second Circuit now has the appeal, No. 26-1835.
The second case is the state's. On July 31, 2026, the attorney general filed a petition in state court in Manhattan, Index No. 453272/2026.
It asks for a permanent order against all of Kalshi's event contracts, not just sports. It also seeks restitution and three times Kalshi's gains.
Kalshi moved that case to federal court the same day. New York wants it sent back, and no judge has ruled on that yet.
Then the federal government stepped in. On August 11, the CFTC ordered Kalshi to keep operating normally, even if New York won a temporary order.
What could change Kalshi's status in New York
Three things could, and all three are moving this fall.
The first is the Second Circuit. It will hear Kalshi's appeal alongside two Connecticut cases. New York's brief is due October 30.
If the court agrees with Judge Torres, New York can enforce its law against Kalshi's sports contracts. If it reverses her, the state must wait.
The second is the state's own lawsuit. It reaches every Kalshi contract, from elections to weather, not just sports.
The third is the Supreme Court. The circuits are split. The Third sided with Kalshi in April, and the Ninth and Sixth ruled against it.
New Jersey has asked the justices to decide. A ruling there would settle the question for every state, New York included. Our litigation tracker follows each case.
Kalshi in New York: timeline
Every change to Kalshi's position in New York, newest first. Each entry links the ruling or filing behind it.
How Kalshi compares to sports betting in New York
New York has had legal mobile sports betting since January 8, 2022. Nine licensed apps take bets, including DraftKings, FanDuel and BetMGM.
The state takes 51% of their mobile revenue in tax, much of it for schools. Sportsbooks must also turn away anyone under 21.
They cannot take bets on games involving New York college teams either.
Kalshi follows none of those state rules, because it answers to the CFTC. That is exactly why New York calls it an unlicensed sportsbook.
For you, the practical difference is the other side of the trade. A sportsbook sets the odds and takes your bet. On Kalshi you trade with other people.
Other prediction market apps in New York
Kalshi is not alone in New York's sights. The state has sued Polymarket US, Coinbase and Gemini, calling each an unlicensed gambling business.
Other apps hold back on their own. DraftKings and FanDuel run sportsbooks here, so their prediction apps skip sports in New York.
Underdog Predict, PrizePicks and Fanatics Markets offer no event contracts in New York at all.
Here is where each app we rank stands in the state. For the full picture, see prediction markets in New York.
| App | Status in New York | More |
|---|---|---|
| Gemini Predictions | Available, sports included | Gemini Predictions review |
| Polymarket US | Contested for all event contracts, with no restriction in force | Polymarket review |
| OG | Available, sports included | OG review |
| Interactive Brokers | Available; it lists no sports contracts anywhere | Interactive Brokers review |
| Robinhood | Available, sports included | Robinhood review |
| ProphetX | Available, sports included | ProphetX review |
| Coinbase | Available, sports included | Coinbase review |
| Webull | Available, sports included | Webull review |
| Novig | Available, sports included | Novig review |
| DraftKings Predictions | Available, but not for sports contracts | DraftKings Predictions review |
| Fanatics Markets | Not available | Fanatics Markets review |
| FanDuel Predicts | Available, but not for sports contracts | FanDuel Predicts review |
| PrizePicks | Not available | PrizePicks review |
| Underdog Predict | Not available | Underdog Predict review |
How to use Kalshi in New York
Sign up with your email, confirm your identity with a driver's license or passport, and fund the account.
Kalshi takes bank transfers, debit cards, Apple Pay, PayPal, Venmo, wires and crypto, among others. Withdrawals carry no Kalshi fee.
Know the risk before you fund. If a court sides with New York, Kalshi's contracts here could close.
Read our Kalshi review for its fees, payouts and the lawsuits against it. New to all this? Start with what prediction markets are.