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A US district judge denied Kalshi's request for a preliminary injunction against New York state gambling law.

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Golden Finance reported on July 8, citing Forbes contributor Daniel Wallach, that U.S. District Judge Analisa Torres of the Southern District of New York rejected Kalshi’s request for a preliminary injunction against New York State’s gambling laws. The judge said that New York’s gambling regulations are not subject to the federal preemption principle under the Commodity Exchange Act (CEA), and that Kalshi failed to show that it was likely to succeed on its legal claims. The ruling noted that, with respect to Kalshi’s sports event contracts, New York State has the authority to exercise its police power to regulate them, and that the structure and legislative background of the CEA indicate that Congress did not intend to displace all state laws related to designated contract markets (DCMs). Previously, courts in Maryland and Ohio also issued similar rulings that were unfavorable to Kalshi.
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