Kalshi files same-day appeal of NY court's rejection of bid to block state gambling law enforcement

Written by Ezra Reguerrastaff writerReviewed by Robert Lakinstaff editorWritten by Ezra Reguerrastaff writerReviewed by Robert Lakinstaff editorKalshi files same-day appeal of NY court's rejection of bid to block state gambling law enforcementLatest NewsPublishedJul 8, 2026Kalshi appealed to the Second Circuit after a New York federal judge denied its request to block state gambling officials from enforcing local laws against its sports event contracts.Kalshi is appealing a New York federal judge's rejection of its bid to block state gambling officials from enforcing local laws against the prediction market platform's sports-related event contracts. In a notice filed on Tuesday in the US District Court for the Southern District of New York (SDNY), Kalshi said it would take the case to the US Court of Appeals for the Second Circuit. The appeal followed a same-day opinion and order denying the platform operator's motion for a preliminary injunction against officials at the New York State Gaming Commission. The appeal escalates a growing legal fight over whether sports prediction markets are federally regulated derivatives or state-regulated gambling products. This question has already split courts across the United States.Judge Analisa Torres earlier Tuesday rejected that argument at the preliminary injunction stage, finding that New York gambling laws, as applied to Kalshi’s sports-event contracts, were not preempted by the US Commodity Exchange Act. The court said Kalshi had not made a “clear or substantial showing” that it was likely to succeed on the merits.The order also noted that other jurisdictions have had split opinions on similar requests from Kalshi. Some have granted injunctions against state enforcement, while others have denied the company’s motions.“Major loss for Kalshi in the nation’s financial capital, with likely knock-on effects in other cases (esp. Connecticut and other SDNY lawsuits),” wrote lawyer Daniel Wallach, whose Florida law firm is de…

Kalshi files same-day appeal of NY court's rejection of bid to block state gambling law enforcement

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