NY Judge Denies Kalshi Injunction Over Sports Contracts

A federal judge in New York has denied prediction market platform Kalshi a preliminary injunction, allowing the state to continue enforcing its gambling laws against the company's sports-related event contracts. The ruling, issued on Tuesday, July 7, 2026, by U.S. District Judge Analisa Torres, represents a significant setback for Kalshi in its nationwide legal battle against state regulators.

Judge Torres found that New York's application of its gambling laws to Kalshi's sports event contracts is not preempted by the federal Commodity Exchange Act (CEA), the statute Kalshi has relied upon to argue for exclusive federal oversight. In her order, she stated that Kalshi had not made a clear showing it was likely to succeed on the merits of its case. The judge noted that the power to regulate gambling is a traditional state authority and that the CEA's grant of exclusive jurisdiction to the Commodity Futures Trading Commission (CFTC) does not necessarily leave "no room for supplementary state legislation."

The decision means the lawsuit, which Kalshi filed against the New York State Gaming Commission on October 27, 2025, will proceed to the motion-to-dismiss stage. The state had...