Judge Torres Denies Kalshi Bid to Block New York Sports-Event Contract Suit
Summary
- Torres denied Kalshi's request for emergency relief and preliminary injunction, allowing New York state's sports-event contract lawsuit to continue.
- Torres found that New York state's gambling laws apply to Kalshi's sports-event contracts and are not preempted by the Commodity Exchange Act.
- The ruling could affect the fight over regulatory authority between prediction-market platforms and state governments, as well as the debate over the scope of federal and state law as sports-contract services expand.
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Analisa Torres, the judge who handled Ripple Labs' XRP case, has denied prediction-market platform Kalshi's request for emergency relief. The decision allows New York state's lawsuit over sports-event contracts to proceed.
Eleanor Terrett, host of CryptoAmerica, reported on July 7 that Torres of the U.S. District Court for the Southern District of New York denied Kalshi's motion for a preliminary injunction.
Torres found that New York gambling laws are not preempted by the federal Commodity Exchange Act as applied to Kalshi's sports-event contracts. The case will now move to the next stage, where the court will consider whether to dismiss the suit.
The lawsuit began after New York argued that Kalshi's sports-event contracts effectively amount to illegal sports betting. Kalshi has countered that its products are lawful prediction-market contracts overseen by the Commodity Futures Trading Commission and that federal law should take precedence.
The ruling could influence the broader legal fight over regulatory authority between prediction-market platforms and state governments. As operators including Kalshi and Polymarket expand sports-contract offerings, the debate over the boundary between federal and state law is poised to continue.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.