New York wins court battle against prediction market platform Kalshi

U.S. District Judge Analisa Torres in Manhattan denied Kalshi's request for a preliminary injunction, ruling that New York's gambling statutes apply to the prediction‑market platform's sports‑event contracts and are not superseded by the federal Commodity Exchange Act. The judge emphasized the state's interests in preventing gambling addiction, protecting sports integrity and curbing unregulated contracts.

Governor Kathy Hochul and Attorney General Letitia James praised the decision, while the Commodity Futures Trading Commission asserted its exclusive jurisdiction over commodity derivatives, including prediction markets. Kalshi has appealed the ruling to the federal appeals court, and the case is seen as a pivotal test in the growing clash between state regulators and federal authorities over the booming online betting industry.