Predictions platform Kalshi sues NY regulator claiming overreach
Kalshi sued the New York State Gaming Commission, arguing the regulator overstepped its jurisdiction by targeting its event contracts as unlicensed sports betting.Summary
The trading platform Kalshi has filed a lawsuit against the New York State Gaming Commission in a Manhattan federal court, alleging the regulator is overstepping its authority by issuing a cease and desist order against Kalshi for allegedly offering unlicensed sports betting.
Kalshi contends that as an exchange regulated by the Commodity Futures Trading Commission (CFTC), it falls under exclusive federal jurisdiction, and New York's efforts to regulate its event contracts are preempted by federal law. The platform sought a preliminary and permanent injunction, arguing that the state's actions threaten immediate and irreparable harm to its viability.
The lawsuit is part of Kalshi's ongoing legal challenges against state regulators across the US, including similar cases in Nevada, New Jersey, Maryland, and Ohio. While Kalshi has secured preliminary injunctions against regulators in Nevada and New Jersey, a Maryland court denied a similar request.
(Source：Cointelegraph)