Judge rejects Kalshi attempt to override New York state gambling laws
Summary
A federal judge rejected Kalshi’s request to block New York’s gambling laws that stop the company from offering sports-event bets. Kalshi is appealing this decision while New York continues to enforce its laws to protect consumers. The court ruled that federal regulation does not prevent states from applying their own gambling rules.Key Facts
- Kalshi is a prediction market company registered under the Commodity Futures Trading Commission (CFTC).
- New York’s State Gaming Commission told Kalshi to stop offering sports betting contracts in October 2025.
- A federal judge ruled that New York’s gambling laws apply to Kalshi despite its CFTC registration.
- The judge said federal law allows states to regulate gambling alongside federal rules.
- Kalshi argues its contracts are financial swaps regulated by the CFTC, but New York views them as gambling.
- Kalshi is appealing the ruling to the US Court of Appeals for the 2nd Circuit.
- New York officials want to protect consumers, especially young adults, from unregulated sports gambling.
- Kalshi and its competitor Polymarket are connected to Donald Trump Jr. as an advisor or investor.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.
