Feed / Enforcement & compliance
By SectorWire desk ·
The report said that New York sued Kalshi amid conflicting rulings on federal preemption. The lawsuit was among the week’s legal developments affecting prediction markets.
The lawsuit adds to the legal uncertainty facing Kalshi’s prediction-market operations.
Request a correction / right of reply
Linked through shared companies, regulators and people, or one step further through the graph.
Kalshi faces a state legal challenge over whether its prediction market complies with gambling law.
The lawsuit contests Kalshi’s legal authority to offer its products in New York.
The lawsuit seeks to stop Kalshi’s New York operations and recover money for consumers.
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.