Judge Rejects Kalshi's Bid to Override New York Gambling Laws
A federal judge has rejected prediction market operator Kalshi's request to block enforcement of New York's state gambling laws. The company intends to appeal.
A federal judge yesterday rejected prediction market operator Kalshi's attempt to override New York state gambling laws, denying the company's request to block enforcement of the rules.
Kalshi has stated it will appeal the decision to a higher court. This case is among several where judges are determining whether state laws are preempted by federal regulation of prediction markets.
New York Governor Kathy Hochul and Attorney General Letitia James issued a joint statement on the ruling, stating, "New York's gambling laws are designed to protect consumers. Kalshi tried to ignore them. Yesterday, they lost in court. We will continue to hold all gambling platforms accountable to the law—and that includes prediction markets." The ruling could impact the future regulation of prediction markets in the U.S. as courts grapple with existing state laws against newer digital marketplaces.