By Jonathan Stempel <\/p>\n
NEW YORK, July 8 (Reuters) – A federal judge denied Kalshi’s bid to block New York from enforcing its gambling laws against the prediction markets \u200cplatform, amid a growing battle between federal and state regulators over authority to \u200cpolice the fast-growing industry. <\/p>\n
In a decision on Tuesday, U.S. District Judge Analisa Torres in Manhattan said Kalshi did not \u200bdeserve a preliminary injunction, because the federal Commodity Exchange Act did not supersede New York’s gambling laws as applied to Kalshi’s sports-event contracts. <\/p>\n
Torres also said New York’s interests in preventing gambling addiction, preserving sports’ integrity and avoiding a proliferation of unregulated contracts “heavily” outweigh Kalshi’s interests in ensuring the \u200cprimacy of federal law and \u2060that customers don’t face “intractable” technology issues. <\/p>\n
“Kalshi has not, therefore, made a clear or substantial showing that it is likely to succeed on the merits,” \u2060Torres wrote. Other federal courts are divided on the issue, she added. <\/p>\n
A lawyer for Kalshi declined to comment. Kalshi appealed Torres’ decision to the federal appeals court in Manhattan. <\/p>\n
In a joint statement on \u200bWednesday, New \u200bYork’s Governor Kathy Hochul and Attorney General Letitia \u200bJames welcomed the decision. <\/p>\n
“New York’s gambling \u200claws are designed to protect consumers,” they said. “We will continue to hold all gambling platforms accountable to the law – and that includes prediction markets.” <\/p>\n
CFTC CLAIMS ‘EXCLUSIVE’ OVERSIGHT <\/p>\n
The U.S. Commodity Futures Trading Commission rejects New York’s view, citing what Chairman Michael Selig has called its “exclusive” jurisdiction over commodity derivatives markets, including prediction markets. <\/p>\n
Prediction markets such as Kalshi and Polymarket let people wager on \u200cthe outcome of events such as sports and elections. <\/p>\n
They \u200bhave surged in popularity since the 2024 U.S. presidential election, \u200bwhen their real-time probabilities proved more \u200baccurate than polling in predicting Republican Donald Trump’s victory over Democrat Kamala \u200cHarris. <\/p>\n
Kalshi sued New York last October, after \u200bthe state’s gaming commission \u200bordered it to stop offering unlicensed sports event contracts. <\/p>\n
New York filed lawsuits on April 21, accusing Coinbase Financial Markets and Gemini Titan of promoting gambling through their own event contracts. <\/p>\n
The \u200bCFTC sued New York three \u200cdays later, and last month said it has challenged similar regulatory activity in \u200bArizona, Connecticut, Illinois, Kentucky, Minnesota, New Mexico, Rhode Island and Wisconsin. <\/p>\n
(Reporting by Jonathan \u200bStempel in New York; Editing by Aurora Ellis) <\/p>\n","protected":false},"excerpt":{"rendered":"By Jonathan Stempel NEW YORK, July 8 (Reuters) – A federal judge denied Kalshi’s bid to block New…\n","protected":false},"author":2,"featured_media":290481,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[110958,30534,111011,13034,9,11,10,17757],"class_list":["post-290480","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-york","tag-analisa-torres","tag-gambling-addiction","tag-gambling-laws","tag-kalshi","tag-new-york","tag-new-york-headlines","tag-new-york-news","tag-prediction-markets"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/290480","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=290480"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/290480\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/290481"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=290480"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=290480"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=290480"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}