Kalshi, the online prediction marketplace, is fighting back against the New York State Gaming Commission’s attempts to regulate it like a gambling site.
A federal judge on Tuesday denied Kalshi’s request for a preliminary injunction that would have shielded it from state oversight.
“New York’s gambling laws are designed to protect consumers. Kalshi tried to ignore them,” New York Attorney General Letitia James and Gov. Kathy Hochul said in a joint statement. “We will continue to hold all gambling platforms accountable to the law — and that includes prediction markets.”
Kalshi has appealed the judge’s denial. For the moment, Kalshi can continue operating in New York as the case proceeds.
One argument made is that the odds are set by the activity among traders on the app, rather than a casino or sportsbook.
However, under NY state law, any company that offers sports gambling must get a license from the Gaming Commission.
Kalshi sued the commission in October after regulators sent it a cease-and-desist letter.
What would ‘trade’ on in this battle?
