Overview
- Kalshi filed a federal complaint in the Southern District of New York seeking declaratory relief and a permanent injunction after the state’s gaming commission ordered it to stop offering sports-related contracts.
- The New York cease-and-desist letter, sent Oct. 24, accused Kalshi of unlicensed sports wagering, threatened civil and potential criminal penalties, and identified 20 contracts it deems unlawful.
- Kalshi argues that, as a CFTC-designated contract market, its event contracts fall under exclusive federal jurisdiction and that blocking New Yorkers would cause immediate, irreparable harm and conflict with national-exchange obligations.
- Courts have split in similar cases, with Kalshi winning preliminary injunctions in Nevada and New Jersey but losing in Maryland, where officials have allowed operations to continue during the case.
- The broader fight is expanding as multiple states issue warnings or orders, a Nevada judge recently denied Crypto.com’s injunction and required geofencing by early November, and lawmakers press the CFTC on the scope of its authority.