Is Kalshi legal in New York? The $36 billion lawsuit and what it means for traders (2026)
Kalshi still operates in New York, its home state, but New York has sued it for at least $36 billion and a federal judge refused to block state enforcement. The timeline, the CFTC’s emergency order, Polymarket, and what New Yorkers can trade.
Kalshi is still available in New York, but its status there is the most contested in the country. New York's attorney general and governor sued Kalshi in July 2026, calling it an illegal gambling operation and seeking at least $36 billion. In August the CFTC, Kalshi's federal regulator, used emergency powers to order Kalshi to keep operating.
New York matters more than most states because Kalshi is based in New York: an order shutting it down there could, in the CFTC's words, cut off its event contracts nationwide.
As of 21 October 2026. The latest reported developments are from August; check the app and the news before you trade.
Kalshi in New York at a glance
| Status in New York | |
|---|---|
| Kalshi | Available as of the latest reports, under a CFTC emergency order |
| State lawsuit | Filed 31 July 2026 by Attorney General Letitia James and Governor Kathy Hochul |
| Federal court | A judge refused Kalshi's bid to block state enforcement (July 2026) |
| Online sportsbooks | Legal since 2022, 21+, licensed by the State Gaming Commission |
| Minimum age on Kalshi | 18 |
Timeline
| When | What happened |
|---|---|
| April 2026 | The CFTC sues New York, among several states, over their actions against prediction markets; New York's attorney general joins 37 others backing Massachusetts against Kalshi |
| 7 July 2026 | A federal judge in Manhattan denies Kalshi a preliminary injunction against New York's gaming regulator |
| 27 July 2026 | The same court refuses to protect Kalshi while it appeals |
| 31 July 2026 | New York sues Kalshi in state court, seeking at least $36 billion, triple the gains, $100,000 per unauthorised sports offer and a restraining order |
| 11 August 2026 | The CFTC uses its emergency authority to order Kalshi to keep offering its markets |
What New York claims
The lawsuit goes further than most states. It argues that all of Kalshi's contracts, not just sports, are illegal gambling under New York law, citing a Senate-control contract and a reality-TV contract as examples. It also says Kalshi does not stop under-21s from signing up, while New York's licensed sportsbooks require users to be 21.
Kalshi's position, backed by the CFTC, is that its contracts are federally regulated derivatives and that federal law overrides state gambling law (how Kalshi argues it is legal).
What New Yorkers can trade
As long as Kalshi remains available: sports, New York and national elections, economics, weather (including New York City temperature markets) and culture. If a court order takes effect, the app's location check will show what is still allowed.
Polymarket in New York
Polymarket is also headquartered in New York. Its global site is closed to US users; Polymarket US, the CFTC-regulated app, faces the same state law, so check its availability in the app (is Polymarket legal in the US?). In 2025 New York also banned dual-currency sweepstakes apps, which pushed sports apps such as Novig toward federal licences (Novig review).
Is Kalshi legal in New York? Frequently asked questions
Is Kalshi legal in New York?
It was still operating in New York as of the latest reports, under a CFTC emergency order, while New York's lawsuit to shut it down continues.
Why is New York suing Kalshi?
The state says Kalshi runs an unlicensed gambling operation, that all its contracts are illegal under state law, and that it lets under-21s trade.
How much is New York seeking from Kalshi?
At least $36 billion in damages, plus penalties.
Is Polymarket legal in New York?
The global site is closed to US users. Polymarket US faces the same state law; check the app.
Can I use Kalshi in New York at 18?
Kalshi's minimum age is 18; New York's lawsuit argues that should be 21, as for sportsbooks (Kalshi age requirement).
