US intervenes in New York gambling law dispute involving Kalshi
The U.S. Commodity Futures Trading Commission (CFTC) has exercised emergency authority to prevent New York from enforcing its gambling laws against Kalshi, ordering the prediction market to continue operating in the state.
The Trump administration has intervened in a dispute over New York's gambling laws, ordering the prediction market platform Kalshi to continue operating within the state. The Commodity Futures Trading Commission (CFTC) announced it used its emergency authority in response to a "market emergency."
The CFTC stated its actions were taken "to ensure market stability" and ordered the exchange to continue operating in accordance with the Commodity Exchange Act’s Core Principles. The U.S. administration’s intervention followed a request from Kalshi.
The alleged market emergency stems from a lawsuit filed by New York Attorney General Letitia James on July 31. James' lawsuit seeks a court order to permanently enjoin Kalshi from "operating an unlawful gambling business" in the state. The suit also demands Kalshi make full restitution to customers who have engaged in betting and pay financial penalties.
Kalshi operates a platform where users can trade contracts based on the probability of future events, such as political outcomes. New York's Attorney General's office contends this constitutes illegal gambling under state law.