US District Judge Analisa Torres denied Kalshi’s request to block New York from applying its gambling laws to the company’s sports event contracts. Torres ruled that the Commodity Exchange Act does not displace those laws; Kalshi has appealed to the Second Circuit.
The ruling leaves New York able to enforce its gambling laws against Kalshi’s sports contracts while the appeal proceeds.
The day’s most important stories, free. One email a day.
New York Governor Kathy Hochul and Attorney General Letitia James announced a lawsuit against Kalshi last Friday. The state accuses the prediction market platform of running an illegal gambling business and offering wagers on sports, elections and cultural events without a licence.
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.
It was reported that New York took Kalshi to court seeking $36bn in damages. Separately, the NFL and other leagues urged CFTC to set minimum ages for sports-event trading.
New York’s attorney general has sued Kalshi, alleging that its prediction markets constitute gambling and that it operates without a state licence. The state seeks to stop the service, recover alleged proceeds, compensate users and impose a penalty of up to three times the alleged proceeds; Kalshi has appealed an earlier ruling that denied its request to halt enforcement.
US District Judge Stephen Locher denied Kalshi’s request for a preliminary injunction against Iowa’s gambling regulation. Locher found that Kalshi was unlikely to establish that federal commodities law pre-empts Iowa’s gambling laws.