Kalshi lost an attempt to override New York's state gambling laws yesterday, with a federal judge rejecting the prediction market operator's request to prevent enforcement of the rules.
Kalshi is appealing the decision to a higher court. This is one of numerous cases in which judges must decide whether state laws are preempted by federal regulation of prediction markets.
New York Governor Kathy Hochul and Attorney General Letitia James issued a joint statement on the ruling today. “New York’s gambling laws are designed to protect consumers," they said. "Kalshi tried to ignore them. Yesterday, they lost in court. We will continue to hold all gambling platforms accountable to the law—and that includes prediction markets.”