U.S. District Judge Analisa Torres denied Kalshi’s bid for a preliminary injunction, clearing New York to enforce state gambling rules against the prediction market and similar platforms such as Polymarket.
Section 2 of the Commodity Exchange Act drove the ruling: Torres said its text preserves other regulators’ authority, undercutting Kalshi’s claim that CFTC oversight preempts state gambling law.
New York had sent Kalshi a cease-and-desist letter in 2025 over unlicensed sports wagering, and Torres said nothing bars the company from seeking a state license instead of bypassing the Gaming Commission.
The decision cuts against a broader industry push backed by the CFTC and Trump allies, even as states argue prediction markets function like sportsbooks; about 90% of Kalshi volume is sports-related, including more than $1 billion on the Super Bowl.