Judge Torres denies Kalshi bid to bypass New York gambling laws

U.S. District Judge Analisa Torres concluded that New York’s interest in curbing gambling addiction and maintaining sports integrity outweighs the operational concerns raised by the platform. In her decision, Torres emphasized that Kalshi failed to demonstrate a clear likelihood of success on the merits, noting that federal courts remain divided on whether the Commodity Futures Trading Commission holds exclusive jurisdiction over these markets.

Following the ruling, Governor Kathy Hochul and Attorney General Letitia James issued a joint statement affirming their commitment to holding prediction platforms accountable under state consumer protection statutes. Kalshi has since appealed the decision to the federal appeals court in Manhattan.

The conflict underscores a broader regulatory tug-of-war. While the CFTC maintains that it holds exclusive oversight over commodity derivatives, New York and several other states, including Arizona and Connecticut, are actively moving to restrict unlicensed event contracts. The legal friction comes as platforms like Kalshi and Polymarket see surging participation, fueled by the visibility gained during the 2024 U.S. presidential election cycle.