Prediction Markets in New York: Legal Status

Status as of September 2, 2026

New York's own case against KalshiEX LLC is pending and undecided. The Attorney General filed a verified petition in Supreme Court, New York County on July 31, 2026 under Executive Law section 63(12), alleging at paragraph 54 that "Respondent is not licensed by the New York State Gaming Commission in any capacity" (source 0). Kalshi removed the proceeding to the Southern District of New York the same day, where it sits as 1:26-cv-06550 before Judge Vernon S. Broderick; the state's motion to send it back to state court has been fully submitted since August 28, 2026 and no ruling appears on the docket (source 3). Two other exchanges are litigating against the same New York officials in that district, North American Derivatives Exchange, Inc., d/b/a OG (1:26-cv-04980) and Ludlow Exchange, LLC (1:26-cv-06676), each with an undecided preliminary injunction motion (sources 7 and 8). No New York-specific primary record was located for Polymarket, PredictIt or Robinhood.

What the record shows

Oldest first, from the documents themselves.

October 24, 2025: Gaming Commission Executive Director Robert Williams writes to KalshiEX LLC demanding that it "cease and desist immediately from illegally operating, advertising, promoting, administering, managing, or otherwise making available sports wagering and/or a mobile sports wagering platform in New York," and states that Kalshi "is not licensed by the Commission" to offer one (source 1).

July 7, 2026: In KalshiEX LLC v. Williams, 1:25-cv-08846 (S.D.N.Y.), Judge Analisa Torres issues an Opinion and Order whose conclusion reads: "Kalshi's motion for a preliminary injunction is DENIED" (source 2). An injunction pending appeal is denied on July 27, and on July 29 the Second Circuit denies temporary relief and refers the motion to a three-judge panel (source 4).

July 31, 2026: The Attorney General files the verified petition, asking for a permanent injunction, an accounting, restitution, disgorgement and a penalty of $100K for each unauthorized offering under Racing Law section 1367(16)(a) (source 0). Kalshi files a notice of removal the same day (source 3).

August 3, 2026: The state court signs a decision and order, filed August 4, holding that because "Respondent removed this matter to federal court on 7/31/26," Motion Sequence 001 "is denied as moot, without prejudice to a new motion should the federal court remand this special proceeding," and marking the case disposed (source 6).

August 7 to 28, 2026: The state moves to remand (Dkt 16 and 17), Kalshi opposes (Dkt 21), the state replies (Dkt 22), and the case is reassigned to Judge Vernon S. Broderick on August 10 (source 3).

August 11 to 18, 2026: Judge Colleen McMahon writes that Ludlow Exchange "deals with the same statute as Kalshi and appears to raise the same legal issues and arguments against state regulation of 'derivatives transactions' (or, maybe, gambling)," then keeps the existing briefing schedule (source 8). Judge Lorna G. Schofield orders that the hearing in the Nadex matter "will be conducted September 14, 2026, at 11:00 A.M." (source 7).

August 31 and September 1, 2026: Kalshi files its appellant brief and joint appendix at the Second Circuit in No. 26-1835, and the court sets the appellees' brief for October 30, 2026 (source 5).

What is not documented

No New York-specific primary record naming Polymarket was located as of September 2, 2026, so this page draws no conclusion about it: a docket search across the four New York federal districts returned private suits against Blockratize, Inc. d/b/a Polymarket and federal matters, and no New York State action (source 9). The same search returned one federal case for PredictIt (source 10) and, for Robinhood, no case naming the Attorney General, the Gaming Commission or its commissioners (source 11). Each search repeats on September 16, 2026, a review date and not a promise that a record will exist by then. Two further gaps: the Second Circuit docket carries a letter referring to a CFTC emergency order dated August 11, 2026, which was not obtained from the issuing agency and is not described here (source 5); and New York's state-court filing system does not serve automated requests, so the August 3 order is quoted from the filed document and nothing else in that file is summarised.

What happens next

Three dates are on the record and one is not. A hearing on the preliminary injunction motion in the Nadex matter is set for September 14, 2026 at 11:00 A.M. before Judge Schofield (source 7). The appellees' brief in Second Circuit No. 26-1835 is due October 30, 2026 under the scheduling order of September 1, 2026; no reply-brief date and no argument date appear on that docket (source 5). Nothing in 1:26-cv-06550 sets a date for a decision on the state's remand motion, fully submitted since August 28, 2026 (source 3). In Ludlow Exchange an entry dated August 27, 2026 is docketed as a memo endorsement setting hearings, but its text is not in the record read for this page, so no hearing date is stated here (source 8). Filings are covered as they land in the news section.

What this page does not do

This page is not legal advice, and it is not a conclusion. It reports what primary documents say, who filed them and when, and stops there: no view on the merit of any argument, no forecast of any ruling, and nothing on how New York treats proceeds from event contracts for tax purposes, because no primary source on that question is in the reviewed record. Practical questions about using an exchange from New York belong in the guides, which defer to this page for standing. This page is reviewed every 14 days and again after any filing, ruling, regulator action or platform notice, next on September 16, 2026. Where this page is wrong, or has missed a document, the correction is made on this page and carries its own date.