{"id":290296,"date":"2026-07-08T14:34:31","date_gmt":"2026-07-08T14:34:31","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/290296\/"},"modified":"2026-07-08T14:34:31","modified_gmt":"2026-07-08T14:34:31","slug":"ripple-lawsuit-linked-judge-torres-hands-kalshi-a-big-loss-in-ny-prediction-markets-case","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/290296\/","title":{"rendered":"Ripple Lawsuit-Linked Judge Torres Hands Kalshi a Big Loss in NY Prediction Markets Case"},"content":{"rendered":"

\"Ripple<\/a> Ripple Lawsuit-Linked Judge Torres Hands Kalshi a Big Loss in NY Prediction Markets Case \u2014 Source: CoinGape <\/p>\n

Judge Torres rejects Kalshi’s preliminary injunction against New York over gambling laws. <\/p>\n

Ripple lawsuit judge claims New York state gambling laws apply to Kalshi’s sports-related event contracts. <\/p>\n

The decision could impact ongoing cases and regulatory actions against predictions markets. <\/p>\n

Federal Judge Analisa Torres, known for SEC v Ripple lawsuit, has ruled against prediction market platform Kalshi in a gambling case in New York. This marks a big loss for the prediction market firm, allowing New York state to continue enforcing its gambling laws against the company’s sports-event contracts. <\/p>\n

Ripple Lawsuit Judge Torres Denies Kalshi’s Preliminary Injunction Against NY <\/p>\n

SDNY Judge Analisa Torres, who presided over the high-profile SEC v. Ripple lawsuit involving XRP, has rejected Kalshi’s request for a preliminary injunction. <\/p>\n

Judge Torres found that New York state gambling laws apply to Kalshi’s sports-related event contracts and are not preempted by the Commodity Exchange Act (CEA). The decision clears the way for the lawsuit to proceed. <\/p>\n

In KalshiEX LLC v. Williams<\/a>, Kalshi argued that its sports-related event contracts qualify as CFTC-regulated swaps traded on a designated contract market (DCM). It requested the court to approve a temporary restraining order and preliminary injunction to block New York regulators from enforcing gambling laws against the prediction market. <\/p>\n

New York Attorney General Letitia James disagrees that federal oversight preempts state gambling laws. Her office is now expected to file a civil enforcement action against Kalshi in state court seeking restitution, disgorgement, civil penalties, and injunctive relief. <\/p>\n

According to sports betting and gaming law attorney Daniel Wallach, this is a major loss for Kalshi as it could potentially impact other ongoing cases. Prediction markets could be forced to obtain state licenses or restrict operations in New York. <\/p>\n

Challenges Faced by Prediction Markets in Other States <\/p>\n

Kalshi and Polymarket prediction markets are currently facing many state-level lawsuits and regulatory actions over their event contracts, as well as market manipulation and insider trading concerns. <\/p>\n

A Minnesota federal judge recently agreed<\/a> with the state’s argument that prediction market platforms such as Kalshi and Polymarket have “far exceeded what Congress initially intended” when creating the CFTC framework in 1974. <\/p>\n

Recently, Kentucky joined other U.S. states in suing prediction market operators Kalshi and Polymarket<\/a>, alleging that they were offering illegal sports betting in the state. Kentucky Attorney General Russell Coleman claimed they are subject to gambling laws rather than financial laws. <\/p>\n","protected":false},"excerpt":{"rendered":"Ripple Lawsuit-Linked Judge Torres Hands Kalshi a Big Loss in NY Prediction Markets Case \u2014 Source: CoinGape Judge…\n","protected":false},"author":2,"featured_media":290297,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[110958,25860,13034,9,11,10,49,51,50,17757,5101,110959,86339,110960],"class_list":["post-290296","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-york","tag-analisa-torres","tag-federal-judge","tag-kalshi","tag-new-york","tag-new-york-headlines","tag-new-york-news","tag-new-york-state","tag-new-york-state-headlines","tag-new-york-state-news","tag-prediction-markets","tag-preliminary-injunction","tag-ripple","tag-torres","tag-torres-denies-kalshi"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/290296","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=290296"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/290296\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/290297"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=290296"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=290296"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=290296"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}