A federal judge rejected Kalshi's argument that its CFTC registration preempts New York state gambling laws, ruling that Congress intended to leave room for states to regulate tangential issues like sports betting. Kalshi has announced plans to appeal the decision to the US Court of Appeals for the 2nd Circuit. This ruling reinforces state authority over prediction markets despite federal commodity regulations.
Background
The legal status of prediction markets in the US remains ambiguous due to overlapping jurisdictions between federal commodity regulators (CFTC) and state gaming authorities. This case highlights the ongoing tension between federal deregulation efforts and state-level consumer protection laws.
- Source
- Ars Technica
- Published
- Jul 9, 2026 at 03:14 AM
- Score
- 7.0 / 10