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CFTC orders Kalshi to keep running prediction markets in New York
The regulator invoked emergency authority after New York sued Kalshi in late July to stop its sports-related event markets under state gambling laws.
The U.S. Commodity Futures Trading Commission ordered prediction market operator Kalshi to continue operating in New York while a state lawsuit proceeds. CoinDesk reports the agency issued the order using emergency authority after Kalshi asked for help following New York State Attorney General Letitia James' lawsuit filed at the end of July.
The CFTC said its action keeps Kalshi running in the state while New York seeks to shut down the platform through the courts. The dispute adds to ongoing clashes between the federal commodities regulator and state authorities over whether prediction markets fall under state gambling rules or federal oversight.
According to CoinDesk, New York alleged Kalshi was violating state gambling laws by offering sports prediction markets without a license from the New York State Gaming Commission. The state also said Kalshi had sidestepped obligations including taxes that licensed casinos and mobile sports gambling platforms pay.
CoinDesk also notes Kalshi moved to transfer the case to federal court, while New York moved to transfer it back, and both motions are awaiting a judge's ruling. The CFTC previously intervened in a separate effort to help Kalshi continue operating in Michigan.