New York Seeks Kalshi Influencer Payments and Trading Records

The court petition, reported by SBC Americas, is part of a civil investigation into potentially misleading advertising. The attorney general’s office says Kalshi has not produced any of the requested documents. It wants a court order requiring compliance within 10 days and a monetary penalty.

Payments and Trading Records Come Together

The document requests reach beyond the promotional posts themselves. Investigators are seeking agreements and payments involving people hired to promote Kalshi, along with records of transactions those people made on the exchange.

The subpoena also covers:

• Internal advertising guidance and marketing policies;
• Proprietary trading and liquidity provision by Kalshi;
• Arrangements with external market makers;
• Five incentive programmes covering volume, liquidity and market making.

The trading histories of paid promoters are an unusual part of the request. New York cites social media promotions featuring large wins, including claims that money earned on Kalshi covered rent or replaced employment income. Investigators want records that could help them examine such advertising against actual transactions.

Another part of the petition concerns Kalshi’s repeated claim that its exchange has no "house". The attorney general points to combination trades in which Kalshi Trading, an affiliated market maker, or an approved market maker allegedly takes the other side.

The investigation remains at the document-gathering stage. The petition identifies conduct and advertising claims for examination, rather than presenting findings that either practice broke the law.

Earlier Review Focused on Sponsorship Disclosures

This is not the first examination of Kalshi’s influencer advertising. On June 8, the National Advertising Division (NAD) announced that it would refer Kalshi to regulators. Its concern was whether creators and affiliates clearly disclosed their commercial ties to the company. Kalshi declined to participate in that review.

The September subpoena goes further. NAD had been looking at the visibility of paid relationships in social media posts. New York is requesting both payment information and the promoters’ trading histories.

That leaves investigators with two sets of records to examine: how a promotion was funded and whether the trading activity behind its claims can be substantiated. For affiliates promoting prediction markets, the inquiry reaches beyond the usual sponsorship-label requirements.

Kalshi Seeks Protection From the Subpoena

Kalshi has challenged the attorney general’s approach in a separate federal case. In an October 30 joint court letter, the company argued that New York was trying to gather evidence outside the discovery rules governing its existing gambling lawsuit. That case, filed on July 31, concerns allegations that Kalshi operates an illegal gambling business in the state.

The attorney general’s office maintains that the advertising investigation is separate from the gambling case. It says the subpoena was issued to examine potentially deceptive representations about Kalshi’s business.

On November 4, Kalshi informed federal Judge Vernon S. Broderick of the new state-court petition and renewed its request for a protective order.

For now, New York is asking for document production within 10 days of a court order, plus a penalty. The requested deadline is not yet an obligation imposed by a judge. The courts have not resolved the dispute over the subpoena.