A federal judge in New York has denied Kalshi’s motion for a preliminary injunction against state regulators. The court determined that the Commodity Exchange Act does not preempt New York gambling statutes as they apply to sports-event contracts.
Legal Basis of the Ruling
The decision relies on congressional legislative history. The judge noted that historical records indicate lawmakers intended to exclude the specific type of sports-event contracts offered by Kalshi from federal commodity trading protections. Because the federal statute does not cover these instruments, state gambling regulations remain fully enforceable.Kalshi requested the injunction to suspend regulatory actions while the legal challenge proceeds. The denial requires the company to comply with New York’s existing gambling framework during the ongoing proceedings. The matter will advance to the next phase of federal litigation.
Source: Gamb.