Kalshi Appeals After New York Court Denies Bid to Halt State Enforcement
Summary
- Global prediction-market platform Kalshi filed a notice of appeal shortly after the US District Court for the Southern District of New York denied its request for a preliminary injunction.
- The court said New York gambling law applies to Kalshi’s sports event contracts, does not violate the federal Commodity Exchange Act, and that Kalshi failed to show it was likely to prevail on the merits.
- The US Commodity Futures Trading Commission (CFTC) has filed a brief supporting Kalshi and is pursuing a lawsuit asserting federal jurisdiction over prediction markets against five states, while Kalshi has also filed a separate suit against Illinois.
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Global prediction-market platform Kalshi filed an appeal shortly after a federal court in New York denied its request for a preliminary injunction against state regulators.
Cointelegraph reported on July 8 that Kalshi submitted a notice of appeal to the US District Court for the Southern District of New York the same day. On July 7, the court rejected Kalshi’s bid to block enforcement by New York state regulators.
The court found that New York gambling law, as applied to Kalshi’s sports event contracts, does not violate the federal Commodity Exchange Act. It also said Kalshi had failed to show a sufficient likelihood of success on the merits.
The decision comes as a jurisdictional fight over prediction markets intensifies between state and federal authorities. In May, the Commodity Futures Trading Commission filed an amicus brief with a federal appeals court in Ohio in support of Kalshi.
The CFTC has also sued five states — Wisconsin, New York, Arizona, Connecticut and Illinois — asserting federal jurisdiction over prediction markets. Kalshi separately sued Illinois late last month.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul