Court in New York Allows State to Regulate Kalshi’s Sports Markets as Gambling

^{New York Attorney General Letitia James and Governor Kathy Hochul}

A court in New York has allowed state authorities to apply gambling laws to Kalshi’s platform, Reuters reports.

Kalshi had sought a temporary injunction that would have prevented New York officials from enforcing the state’s gambling laws against the platform. The company argued in court that prediction markets are not sports betting. Kalshi also pointed to its oversight by the U.S. Commodity Futures Trading Commission (CFTC).

The court was not persuaded by those arguments. The ruling said the company had not shown sufficient grounds for blocking the enforcement of gambling regulations against the platform.

However, the decision applies specifically to Kalshi’s sports contracts, not to all prediction markets offered on the platform.

The dispute with New York authorities began after the New York State Gaming Commission demanded in October 2025 that Kalshi stop offering prediction markets on sports events. The company later filed a lawsuit against the regulator.

New York Governor Kathy Hochul and state Attorney General Letitia James welcomed the court’s decision, saying New York’s gambling laws are designed to protect consumers.

“Kalshi tried to ignore them, but lost in court. We will continue to hold all gambling platforms accountable under the law, including prediction markets,” Hochul and James said in a joint statement.

Kalshi has already appealed the decision to the U.S. Court of Appeals for the Second Circuit.