US District Judge Analisa Torres has denied a motion filed by prediction market operator Kalshi. The ruling prevents the company from blocking New York state from enforcing local gambling regulations against its platform.
The Manhattan court rejected the request for a preliminary injunction. Judge Torres determined that the federal Commodity Exchange Act does not supersede New York’s gambling statutes regarding sports-event contracts. The decision prioritizes state interests in preventing gambling addiction and maintaining sports integrity over the company's argument for federal law primacy.
New York Governor Kathy Hochul and Attorney General Letitia James issued a joint statement regarding the verdict. They emphasized that state laws are designed for consumer protection and noted that Kalshi attempted to bypass these regulations. The officials confirmed that all gambling platforms, including prediction markets, will be held accountable.
Legal Actions in Michigan
Legal challenges against the operator continue in other jurisdictions. Michigan Attorney General Dana Nessel recently obtained a temporary restraining order in the Ingham County Circuit Court. This order prohibits Kalshi from offering or advertising online sports wagers within the state.