New York District Court Judge Analisa Torres has denied a preliminary injunction request from Kalshi against the New York State Gaming Commission (NYSGC), believing there is “nothing” preventing the operator from obtaining a required license.
“Kalshi has not shown that it is impossible to comply with both New York gambling laws and the CEA (Commodity Exchange Act),” Torres’ ruling stated.
“There is nothing preventing Kalshi from obtaining a license pursuant to New York law and establishing a category of New York market participants that does not discriminate within that New York-resident category.”
The prediction markets operator originally filed for a preliminary injunction and temporary restraining order against the NYSGC in October 2025, part of an attempt to continue offering sports event contracts to residents.
The NYSGC issued a cease-and-desist letter to Kalshi which initiated the legal proceedings, requiring the operator to stop “advertising, promoting, administering, managing or otherwise making available sports wagering and/or a mobile sports wagering platform in New York.”
Torres continued: “Although the prospect of being subject to criminal prosecution could demonstrate a showing of irreparable injury, Kalshi’s harms ‘are largely monetary.’
“As defendants contend, any civil fines that may be levied against Kalshi can be challenged and vacated if Kalshi ultimately prevails on the merits, which, as stated above, is unlikely.”
Governor Kathy Hochul and Attorney General Letitia James issued a joint statement following the denial, having said, “New York’s gambling laws are designed to protect consumers. Kalshi tried to ignore them. Yesterday, they lost in court.
“We will continue to hold all gambling platforms accountable to the law — and that includes prediction markets.”
As part of a social media post, Hochul claimed “gamble with our laws and you’re going to lose. Just ask Kalshi.”
Kalshi immediately filed an appeal in the US Second Circuit Court of Appeals, as New York joins Michigan in witnessing recent legal victories over the operator.
The Cayuga Nation in New York filed a lawsuit in Albany Federal Court against Caesars Sportsbook during June 2026, alleging the operator conducted unauthorized gaming on Tribal lands
