Kalshi wins New York CFTC enforcement ruling

• A New York federal judge denied the CFTC’s request to block Kalshi’s sports event contracts.
• The ruling allows Kalshi to continue offering the contracts while the wider legal dispute proceeds.
• The case could influence how US regulators classify prediction markets offering event-based contracts.

A New York federal judge denied the Commodity Futures Trading Commission’s request to block Kalshi’s sports event contracts.

The CFTC argued the contracts involved gaming and should face restrictions under US derivatives laws governing event contracts.

The judge found the regulator had not met the legal requirements needed to secure the requested enforcement action against Kalshi.

The decision allows Kalshi to continue offering affected contracts while the broader dispute over prediction market regulation proceeds.

The ruling does not settle every regulatory question surrounding sports event contracts or determine how future cases will be handled.

Kalshi operates a federally regulated prediction market where users trade contracts based on outcomes of elections, sports and other events.

Prediction markets have attracted regulatory attention as platforms expand event contracts and regulators examine whether some products constitute prohibited gaming.