A federal judge in New York ruled that Kalshi had not adequately shown its case could succeed on the argument that federal swaps law pre-empts state gaming rules. Judge Analisa Torres said New York retained room to regulate gambling and noted Kalshi could seek a state gaming licence.
The ruling leaves Kalshi facing New York gaming rules unless it obtains a state licence or succeeds through further proceedings.
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A federal appeals court judge denied Kalshi's motion for an injunction that would have stopped New York state officials from acting against the prediction market. Kalshi is suing the state over an order to stop offering derivative contracts on sporting events. Officials could take action on or after Thursday.
A federal judge in Illinois ruled on 2 October that the state cannot enforce several gambling laws against Kalshi while the case proceeds, according to press reports. The judge found Kalshi’s contracts are likely swaps under federal law and that state licensing rules are likely pre-empted, but deferred a decision on fees. The ruling is not final.
A Connecticut judge denied Kalshi's motion for a preliminary injunction. Judge Vernon D. Oliver ruled that sports-event contracts are not swaps under the Commodity Exchange Act and compared parlays with casino gaming.
A Massachusetts judge has allowed an expanded gaming suit involving Kalshi to proceed, according to a Massachusetts Gaming Commission listing dated 30 June 2026. The listing provides no further details about the ruling.
A Washington state judge has granted a preliminary injunction against Kalshi. The court found the state likely to succeed on claims that the operator's event contracts breach state gambling laws, and rejected Kalshi's argument that federal law pre-empts state enforcement.