A federal judge denies Kalshi’s request to block New York regulators from enforcing the state’s sports gambling laws against the company. In the ruling, the judge finds that New York’s gambling laws, as applied to Kalshi’s sports-event contracts, are not preempted by the federal Commodity Exchange Act. That means federal law does not prevent New York from pursuing enforcement related to the specific contracts at issue in the challenge.
The decision leaves New York’s enforcement efforts in place while the broader legal dispute continues. Kalshi’s attempt to obtain an injunction that would have halted state action is therefore unsuccessful. The ruling addresses the legal question of whether federal commodities regulation displaces state gambling regulation in this context, and concludes it does not. Other aspects of the underlying dispute—such as how Kalshi’s products should be regulated—remain to be decided through further proceedings.
