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Prediction market Kalshi clashes with the New York State Gaming Commission: "I don't answer to you."
Prediction trading platform Kalshi is now in a legal battle with the New York State Gaming Commission.
Here’s what happened: Kalshi filed a lawsuit in Manhattan federal court against the New York State Gaming Commission, accusing it of overstepping its authority. The state had demanded that Kalshi stop offering sports betting services, claiming they lacked the proper license. But Kalshi pushed back, arguing that they are regulated by the CFTC (Commodity Futures Trading Commission) and are classified as a commodities futures exchange—not a gambling platform—so the state has no jurisdiction.
What’s more, Kalshi has already won cases in Nevada and New Jersey courts, with judges issuing preliminary injunctions to block similar state-level regulations. This New York lawsuit is likely to follow the same pattern.
Interestingly: This legal clash highlights the tug-of-war between federal and state authority. If Kalshi wins, it would mean that federal regulation under the CFTC takes precedence over state laws for prediction markets. Other states might then find it difficult to ban such platforms individually. For the prediction trading industry, this could be a landmark case.