By SectorWire desk ·
The report said that a federal judge denied Kalshi’s bid for a preliminary injunction, finding federal commodities law did not override New York gambling law. Kalshi appealed to the Second Circuit the same day.
The decision leaves Kalshi challenging New York’s gambling-law authority on appeal.
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The dispute concerns whether states can apply gambling rules to sports-event contracts offered by federally regulated exchanges.
The findings bear on state challenges to Kalshi and Polymarket's position that their contracts fall exclusively under CFTC jurisdiction.
The analysis questions Kalshi’s explanation for concentrated activity in its ether perpetual contracts.
The new contracts allow partial settlement rather than requiring players to reach the full statistical target.
The dispute could affect whether prediction market operators face state gambling laws alongside federal oversight.
The denial challenges Kalshi’s account of a tribal partnership.