Kalshi lost. A federal judge denied the prediction market platform’s motion to block New York from enforcing its gambling laws against sports-event contracts.
The ruling: New York’s gambling laws are not preempted by the federal Commodity Exchange Act. That’s the law that governs commodity trading and derivatives markets, which Kalshi operates under.
Kalshi wanted an injunction to stop New York from cracking down on its sports-event contracts. The judge said no. The state’s gambling prohibitions apply, and the Commodity Exchange Act doesn’t override them.
The decision is a blow for prediction markets trying to operate across state lines. Sports-event contracts have been a growth area for platforms like Kalshi, but state gambling laws vary wildly. New York takes a hard line. This ruling says federal commodities law doesn’t shield them.
Kalshi hasn’t commented on next steps — appeal or pivot. Either way, the legal landscape for prediction markets just got more complicated.
