US tries to override New York gambling laws, orders Kalshi to keep operating
Summary
The Trump administration’s Commodity Futures Trading Commission (CFTC) ordered the prediction market Kalshi to keep operating in New York, overriding a state lawsuit against it for illegal gambling. New York’s Attorney General sued Kalshi for running an unlicensed gambling business, but the CFTC says only it can regulate such markets under federal law.Key Facts
- The CFTC used emergency authority to force Kalshi to keep running in New York.
- New York’s Attorney General sued Kalshi on July 31 for operating illegal gambling without a license.
- The lawsuit demands Kalshi stop operating, pay back customers, and face penalties.
- Kalshi’s market lets users bet on event outcomes, which New York says counts as gambling.
- Governor Kathy Hochul said Kalshi ignored New York’s gaming laws and avoided paying gambling taxes.
- The CFTC says it alone controls these prediction markets as interstate financial exchanges.
- A federal judge rejected Kalshi’s earlier attempt to stop New York’s enforcement, but Kalshi appealed.
- New York wants the case to stay in state court, while Kalshi seeks to move it to federal court.
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