Kalshi Files Federal Lawsuit Against New York Regulators Over Sports Event Contracts
Kalshi has escalated its legal battle with New York regulators by filing a federal lawsuit, challenging the state's attempt to classify its sports event contracts as unlicensed gambling. The MOVE comes after the New York State Gaming Commission issued a cease-and-desist order on October 24, threatening civil and criminal penalties.
The company argues its markets fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC), not state gambling laws. Kalshi's October 27 filing seeks injunctive relief, claiming New York's actions pose immediate and irreparable harm to its platform, users, and business partners.
Despite regulatory pressures from multiple states, Kalshi continues to attract significant investor interest, with valuations reportedly reaching as high as $12 billion. The federal court strategy may represent an attempt to shift the legal battleground away from potentially unfavorable state courts.
