In brief
- Kalshi has filed a federal lawsuit against New York regulators seeking to block the state from treating its sports prediction markets as illegal gambling.
- The suit came after an October 24 cease-and-desist letter from New York’s gaming commission threatening civil penalties unless Kalshi halted sports-event contracts.
- Judge Andrew P. Gordon previously denied Crypto.com’s injunction, the same judge who ruled in Kalshi’s favor in a similar case.
Event-contract platform Kalshi filed a federal lawsuit against New York regulators on Monday, seeking to block the state’s gaming commission from treating its sports prediction markets as illegal gambling, striking preemptively just weeks after rival Crypto.com lost a similar battle in Nevada.
The Manhattan-based company says the federal law preempts state gambling regulations for contracts traded on platforms overseen by the Commodity Futures Trading Commission in its filing.
Kalshi sued after receiving a cease-and-desist letter from the New York State Gaming Commission on Friday, demanding that it halt its sports-event contracts or face civil penalties and potential criminal liability.
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Author: Vismaya V
