Kalshi files immediate appeal after court denies injunction against state gambling law on sports contracts

RegulationDigital Finance
โดย NADA NEWS·Read original
Summary · why it matters

Prediction market platform Kalshi has filed an immediate appeal with the Second Circuit Court of Appeals after the U.S. District Court for the Southern District of New York denied its motion to enjoin enforcement of state gambling laws against its sports-related event contracts. Judge Analisa Torres ruled that state gambling law preempts the federal Commodity Exchange Act, and that Kalshi failed to make the clear and substantial showing required for an injunction. The decision further intensifies a nationwide legal battle over whether sports prediction markets should be treated as federally regulated derivatives or state-regulated gambling products, with courts split on granting and denying injunctions against state enforcement. State crackdowns are extending to other platforms as well; in April, Wisconsin sued Kalshi, Robinhood, Coinbase, Polymarket, and Crypto.com for facilitating illegal sports betting. Meanwhile, the CFTC has sued multiple states including New York, asserting preemption under the Commodity Exchange Act, deepening the federal-state jurisdictional conflict.

Impact on stocks 2

Digital Finance & Tokenization▼ · 2 stocks
Coinbase Global Inc
COIN
▼ NegativeRegulationrelevance

Wisconsin sued Coinbase for facilitating illegal sports betting, part of state crackdown on prediction markets.

Robinhood Markets Inc
HOOD
▼ NegativeRegulationrelevance

Wisconsin sued Robinhood for facilitating illegal sports betting, part of state crackdown on prediction markets.

Theme Impact 1

Off-coverage companies 3

KalshiPrivate▼ Negative
Regulationrelevance

Court denied Kalshi's injunction against state gambling laws, intensifying legal battle and regulatory risk.

Crypto.comPrivate▼ Negative
Regulationrelevance

Wisconsin sued Crypto.com for facilitating illegal sports betting, part of state crackdown on prediction markets.

PolymarketPrivate▼ Negative
Regulationrelevance

Wisconsin sued Polymarket for facilitating illegal sports betting, part of state crackdown on prediction markets.

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