Judge rejects Kalshi attempt to override New York state gambling laws

A federal judge rejected Kalshi's request to block New York from enforcing gambling laws against the prediction market platform, ruling that state gambling regulations are not preempted by federal commodities law. The decision allows New York to continue treating Kalshi's sports-event contracts as unlicensed gambling while the case proceeds. The ruling is expected to have knock-on effects on other cases involving prediction markets, particularly in Connecticut and other SDNY lawsuits.

Source: Ars Technica | 2026-07-08