Why did the court reject Kalshi's request against New York?

The court rejected Kalshi's request because it found that New York's gambling laws do not conflict with the federal Commodity Exchange Act. The ruling allows the state to continue enforcing its gambling regulations while the case proceeds.

What does the ruling mean for Kalshi?

Kalshi can continue operating as a federally regulated exchange, but it cannot prevent New York from enforcing its gambling laws at this stage of the case. The legal dispute will now move to the motion to dismiss stage.

How is Kalshi regulated in the United States?

Kalshi operates under the oversight of the Commodity Futures Trading Commission as a federally regulated prediction market. The company argues that its event contracts should be governed by federal law rather than individual state gambling rules.

What does the case mean for prediction market platforms?

The case could determine whether prediction market platforms must comply with both federal regulations and individual state gambling laws. The outcome may affect how companies offer sports-related event contracts across the United States.

What happens next in the Kalshi case?

The Kalshi case will proceed to the motion to dismiss stage following the denial of the preliminary injunction. Legal experts expect the company could also pursue further appeals as the dispute over regulatory authority continues.

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Judge rejects Kalshi bid over New York rules

Written by Jon CuthbertPublished Jul 8, 2026, 6:52 AM

A US federal judge denied Kalshi's request to block New York from enforcing state gambling laws on its sports-related prediction markets.
The ruling allows the legal dispute to continue as the case moves to the motion to dismiss stage.
The case could influence how state and federal authorities regulate prediction market platforms in the United States.

Kalshi's request for a preliminary injunction was denied after a US federal judge ruled that New York can continue enforcing its gambling laws against the company's sports-related prediction market offerings while the case proceeds.

Judge Analisa Torres of the US District Court for the Southern District of New York found that the state's gambling laws do not conflict with the federal Commodity Exchange Act, rejecting Kalshi's argument that its activities fall exclusively under federal regulation.

“New York’s application of its gambling laws to sports betting does not conflict with the federal Commodity Exchange Act,” Judge Analisa Torres ruled.

Kalshi, which operates as a federally regulated exchange under the Commodity Futures Trading Commission, has argued that its event contracts should be governed by federal law, while New York maintains that sports betting falls within state gambling regulations.

Following the ruling, the case will proceed to the motion to dismiss stage, and Kalshi may pursue additional legal options as the dispute continues.

The case forms part of a broader debate over whether prediction markets tied to sports, elections and other events should be regulated by federal authorities or individual US states.

The outcome could influence how prediction market operators expand across the United States, as companies may need to comply with different state gambling rules alongside existing federal oversight.