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A federal judge in New York has denied Kalshi’s emergency request to block state action against its sports-event contracts, handing the prediction market operator another setback in its fight with state regulators.
In a ruling dated July 28, U.S. District Judge Analisa Torres said Kalshi had not shown enough to justify overturning her earlier decision denying temporary relief. The case matters because New York is trying to stop Kalshi from offering sports-event contracts there, arguing the products violate state gaming law, while Kalshi contends federal commodities law should control.
Torres wrote that Kalshi offered no new authority that would cause the court to conclude the company had made a “strong showing” of success on the merits. She also said the company was seeking something more “drastic” than a routine injunction pending appeal.
Kalshi had already been denied a temporary restraining order and preliminary injunction on July 7. It then filed the emergency motion on July 15.
Judge rejects Kalshi’s latest arguments
According to the ruling, Torres said Kalshi “has not met its burden with respect to any of the four factors to be considered when adjudicating a motion for preliminary injunction.”
She also rejected Kalshi’s reliance on a proposed rule from the Commodity Futures Trading Commission related to federal preemption for certain event contracts. Torres pointed to a similar case in Ohio, where an appeals court concluded at the emergency stage that federal law did not preempt the state’s gaming laws.
The New York dispute has been building since the state sent Kalshi a cease-and-desist letter in October 2025. The New York State Gaming Commission is seeking to halt the company’s sports-event contracts, while New York Attorney General Letitia James has said the state will not subject Kalshi to civil penalties until the broader dispute is resolved.
