Overview
New York’s Attorney General brought a special proceeding under Executive Law § 63(12) — a petition, not a complaint — against KalshiEX LLC in state court (August 2026), making New York the only state litigating against the platform on three tracks at once alongside Kalshi v. Williams and the CFTC’s suit. The petition seeks a permanent injunction against unlicensed gambling, an accounting, restitution, disgorgement, and statutory penalties. Kalshi is the only respondent — unlike Baltimore’s actions, no brokerage distributors are named, and the Governor is not a petitioner despite a joint announcement. Note that the widely-reported "$36 billion" exposure figure does not appear in the petition; it is press arithmetic on the statutory penalty formula. This proceeding also sits in direct tension with a federal order directing the exchange to continue operating. (Caption, court, statute, and filing date confirmed verbatim against the filed petition PDF.)