A federal judge denied Kalshi’s bid to block New York from enforcing its gambling laws against the prediction markets platform, amid a growing battle between federal and state regulators over authority to police the fast-growing industry.
In a decision on Tuesday, U.S. District Judge Analisa Torres in Manhattan said Kalshi did not deserve a preliminary injunction, because the federal Commodity Exchange Act did not supersede New York’s gambling laws as applied to Kalshi’s sports-event contracts.
Torres also said New York’s interests in preventing gambling addiction, preserving sports’ integrity and avoiding a proliferation of unregulated contracts “heavily” outweigh Kalshi’s interests in ensuring the primacy of federal law and that customers don’t face “intractable” technology issues.
