Kalshi Sues New York Regulatory Agency Over Sports Betting Ban

BlockBeats News, October 28th. According to CoinDesk, the prediction market platform Kalshi filed a federal lawsuit against the New York State Gaming Commission on October 28, 2025, challenging the state's ban on its sports-related contracts. Kalshi, as a CFTC-registered Designated Contract Market (DCM), argues that under the Commodity Exchange Act, the CFTC has "exclusive jurisdiction" over derivatives traded on federal regulatory exchanges, and New York State's intervention violates federal law.

Earlier this year, the company self-certified sports event contracts with the CFTC, allowing users to engage in financial betting on match outcomes. Kalshi is seeking emergency relief to prevent New York State from enforcing its cease-and-desist order, stating that failure to do so would cause irreparable harm to the platform and its users.