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New York state capitol (Photo by Michael M. Santiago\/Getty Images)<\/p>\n
Kalshi’s ongoing legal battle with New York<\/a> took another turn this week after a federal judge denied the prediction market operator’s request to block the state from enforcing its gambling laws.<\/p>\n The ruling means New York can continue pursuing enforcement action against Kalshi while the lawsuit moves through the courts, marking another setback for the company as it continues to argue that its event contracts fall under federal oversight rather than state gaming regulations.<\/p>\n Judge Sides with New York<\/p>\n U.S. District Judge Analisa Torres denied Kalshi’s request for a preliminary injunction, concluding that the company failed to demonstrate it was likely to succeed in its legal challenge. In her decision, Torres found that the federal Commodity Exchange Act does not override New York’s gambling laws as they apply to Kalshi’s sports-related event contracts.<\/p>\n The judge also determined that New York’s interests in preventing gambling addiction, protecting the integrity of sports and limiting unregulated gambling activity outweighed Kalshi’s arguments that federal law should exclusively govern its platform. Torres wrote that the company had not made a “clear or substantial showing” that it was likely to prevail in the case.<\/p>\n Appeal Already Underway<\/p>\n Kalshi has already appealed the ruling, ensuring the dispute will continue as prediction markets remain under increasing scrutiny<\/a> across the United States. The company has consistently argued that its contracts are regulated by the Commodity Futures Trading Commission (CFTC), while several states maintain that sports-related event contracts fall under their own gambling laws.<\/p>\n