Kalshi's request to exempt itself from New York's gambling laws was denied by a federal judge. The decision emphasizes the state's authority to regulate prediction markets, impacting Kalshi's operations.
Kalshi faced a legal setback as US District Judge Analisa Torres rejected its attempt to override New York's gambling laws. The judge determined that being registered with the CFTC as a designated contract market (DCM) does not exempt Kalshi from state regulations.
Judge Torres asserted that Congress did not intend to prohibit state actions concerning DCMs in the Commodity Exchange Act (CEA). The ruling suggests that New York’s gambling laws are complementary to federal laws rather than in conflict with them.
Following the ruling, Kalshi filed an appeal with the US Court of Appeals for the 2nd Circuit. This case could further clarify the relationship between state and federal regulations in prediction markets, affecting future operations for similar platforms.
New York Governor Kathy Hochul and Attorney General Letitia James issued a statement emphasizing that the ruling is a reinforcement of consumer protection in gambling. They reiterated their commitment to holding gambling platforms accountable under state law.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
Kalshi's request to exempt itself from New York's gambling laws was denied by a federal judge. The decision emphasizes the state's authority to regulate prediction markets, impacting Kalshi's operations.