U.S. Court Rejects Kalshi's Bid to Block New York Gambling Law, Upholds State Regulation on July 8

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On July 8, the U.S. District Court for the Southern District of New York rejected Kalshi's request for a preliminary injunction seeking to prevent New York State from applying gambling laws to its sports event prediction contracts. Judge Analisa Torres ruled that the state's gambling regulations do not conflict with federal commodity trading law (CEA) and that Kalshi failed to demonstrate a sufficient likelihood of success on the merits. The court found that even though the CFTC holds broad regulatory authority, this does not automatically preempt states from enforcing their own gambling laws. The decision allows New York to continue regulating Kalshi's sports contracts under state law, though this ruling applies only to the preliminary injunction and does not settle the underlying case.
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