Thirty-seven states back New York in Kalshi sports-betting case
Regulation1 min read
Thirty-seven US states, the District of Columbia and the Northern Mariana Islands submitted a brief supporting New York against Kalshi to the Second Circuit Court of Appeals. Registered on 6 November, the brief argues that federal derivatives law should not prevent states from enforcing sports-betting and consumer-protection rules; a separate group of 38 states filed a Wisconsin brief concerning Polymarket, Coinbase, Robinhood and Crypto.com.
A coalition of 37 US states, the District of Columbia and the Northern Mariana Islands has filed a brief supporting New York in its case against Kalshi at the Second Circuit Court of Appeals. The brief, filed on 6 November, argues that federal derivatives law should not prevent states from applying sports-betting and consumer-protection rules.
The dispute began after the NYSGC ordered Kalshi to stop certain activities. Kalshi went to court, arguing that its contracts are subject to oversight by the federal Commodity Futures Trading Commission. A federal court initially rejected Kalshi's request to block enforcement of state rules, and the company has appealed.
A separate coalition of 38 states has filed a brief in Wisconsin defending state powers. That case concerns the marketing of contracts linked to sporting events and involves Polymarket, Coinbase, Robinhood and Crypto.com.
California attorney general Rob Bonta said prediction markets could not use federal law to avoid obligations imposed on traditional betting operators.