New York Note: Kalshi Lawsuit, Pied-à-Terre Tax Rollout, E-Bike Safety

August 10, 2026

New York Sues Kalshi Over Alleged Illegal Gambling Operations

Governor Kathy Hochul and Attorney General Letitia James announced that New York has sued KalshiEX, LLC, alleging that the company is operating an illegal, unlicensed gambling platform through its prediction markets. The lawsuit seeks to stop Kalshi from operating without a state gambling license and require the company to forfeit allegedly illegal gains, provide restitution to affected users, and pay fines equal to three times the gains made through its operations. The State also alleges that Kalshi allows users ages 18 to 20 to participate despite New York’s minimum age of 21 for mobile sports betting.

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NYC Pied-à-Terre Tax Rollout

New York City has begun implementing a new pied-à-terre tax on certain second homes, which was authorized as part of the state budget and is projected to generate more than $500 million annually. As part of the rollout, the City created a public database and sent notices to thousands of homeowners who may be subject to the surcharge, including some who said the properties were their primary residences. The City Council has scheduled an August 18 hearing to review the implementation, while the Administration has added staff to respond to inquiries and extended the exemption application deadline to September 18. A group of homeowners has also filed a lawsuit seeking to delay implementation, arguing that the rollout improperly places the burden on homeowners to demonstrate that they are exempt from the tax.

City Council Announces Review of E-Bike and E-Scooter Safety

Speaker Julie Menin announced a September 30 hearing on e-bike and e-scooter safety in partnership with the Committees on Transportation and Infrastructure, Consumer and Worker Protection, and Public Safety. The hearing will include oversight of the City’s enforcement of existing laws and consideration of more than a dozen legislative proposals. The Council cited a rise in e-bike-related incidents, with collisions up 31.7% this year compared with last year and more than 500 e-bike collisions reported in 2026. Proposals under consideration include measures related to delivery platform oversight, restrictions on certain high-speed e-bikes, traffic enforcement, moped registration, consumer protections, insurance requirements, and street design.

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