By SectorWire desk ·
New York’s attorney general’s office accused the CFTC of using an emergency order to promote Kalshi’s interests in litigation nationwide. The office made the allegation in a letter dated 31 August to a US District Court.
New York’s attorney general’s office challenges the CFTC’s emergency order as promoting Kalshi’s interests in nationwide litigation.
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The dispute concerns whether states can apply gambling rules to sports-event contracts offered by federally regulated exchanges.
The dispute could affect whether prediction market operators face state gambling laws alongside federal oversight.
The outcome could determine whether prediction market operators can continue serving the US market under federal or state rules.
Kalshi’s proposed rule would allow financial penalties, suspension or account deactivation for users harassing athletes or third parties over trading.
Nevada has no fallback plan if the Supreme Court sides with prediction market operators, leaving its stance uncertain.
The suit contests state authority over Underdog’s prediction market and follows a ruling against Kalshi.