The post Prediction Market Kalshi Takes Legal Aim at New York in Battle Over Event Trading Regulation appeared on BitcoinEthereumNews.com.

Crypto News The fast-growing prediction market Kalshi has launched a fresh legal offensive – this time against the New York State Gaming Commission – accusing the agency of unlawfully targeting its operations and threatening fines over what the state calls unlicensed sports betting. The company insists it doesn’t run a gambling business at all, but rather a federally regulated exchange, setting up a clash that could reshape how “event trading” is treated under U.S. law. Kalshi Claims Federal Protection Filed in a Manhattan federal court, the lawsuit argues that New York regulators have no authority to interfere with its activities because Kalshi operates under the supervision of the Commodity Futures Trading Commission (CFTC). In its complaint, the company says the Gaming Commission’s cease-and-desist order “directly conflicts with federal law” and demands a court injunction to stop the state from imposing penalties. Kalshi’s position is that its so-called event contracts – markets that let traders speculate on outcomes such as elections, economic data releases, or sporting events – are legitimate financial products, not wagers. The firm says New York’s crackdown amounts to “regulatory overreach,” and that forcing compliance with gambling rules would create chaos for federally regulated exchanges. The Cease-and-Desist Flashpoint New York’s Gaming Commission recently sent Kalshi a letter demanding an immediate halt to its operations, claiming it was offering sports wagers without a state license. Regulators accused the firm of “promoting and managing” unapproved betting activity linked to sports outcomes. Kalshi fired back, asserting that the order violates the Constitution’s Supremacy Clause, which gives precedence to federal authority when conflicts arise. The company says being forced to shut down New York accounts would inflict “irreparable harm” and disrupt its nationwide trading platform. A Growing Pattern of Legal Fights This isn’t Kalshi’s first battle with state regulators – far from…

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Filed under: News - @ October 28, 2025 4:30 pm