Kalshi Sues New York Regulators Over Alleged Overreach in Event-Betting Crackdown

Event-betting platform Kalshi has launched a preemptive legal strike against the New York Gaming Commission, accusing regulators of overstepping their authority in a cease-and-desist order targeting its sports-related contracts. The Manhattan-based company filed suit just weeks after Crypto.com lost a similar regulatory battle in Nevada.

New York's action follows crackdowns by New Jersey, Nevada, Maryland, and Massachusetts, where authorities have taken increasingly aggressive stances against prediction markets. Massachusetts regulators went beyond cease-and-desist orders, filing suit to block local access to Kalshi's platforms entirely.

Kalshi maintains its operations fall under CFTC jurisdiction rather than state gambling oversight, setting up a potentially landmark clash between federal derivatives regulation and state gaming enforcement. The company's legal team argues this federal preemption shields its New York operations from local penalties.