Kalshi filed a federal lawsuit in New York on Monday after the New York State Gaming Commission ordered it to stop offering what the regulator called unlicensed sports wagering. The company argues that the CFTC has exclusive authority over its exchange and is seeking an injunction and declaratory relief.
The lawsuit will test whether federal CFTC authority or New York’s unlicensed-wagering rules govern Kalshi’s exchange.
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Kalshi filed a federal lawsuit against Illinois officials, arguing that Senate Bill 3019 conflicts with federal oversight of event contracts. The company is seeking to block enforcement before the law takes effect on 1 July, arguing that state licensing requirements would conflict with its obligations as a designated contract market under the CFTC.
iGamingToday reported that New York Attorney General Letitia James sued Kalshi in Manhattan state court. The complaint alleged the company offered event contracts without the gambling licence required by state law.
The New York State Gaming Commission petitioned a Manhattan court on 22 October to require Kalshi to respond to subpoenas in an investigation into possible state gambling-law violations. It seeks records on sports contracts, advertising, users under 21 and corporate ownership, saying the material will help determine whether civil penalties are warranted; Kalshi maintains its contracts are federally regulated financial products.
Light & Wonder filed an objection on 8 December to a Nevada judge’s order requiring it to provide materials from an internal investigation, reportedly arguing the material is protected by legal privilege. The dispute concerns allegations by Aristocrat that a former employee brought confidential design work to Light & Wonder; Light & Wonder denies the accusations.
Crypto.com asked a Nevada federal court for a preliminary injunction last week, challenging a cease-and-desist order issued by the Nevada Gaming Control Board on 20 May. The board ordered the company to stop offering sports-outcome contracts, which it considers gambling subject to state licensing; Crypto.com argues they are federally regulated commodity derivatives.