A coalition of 37 states has filed an amicus brief in the US Court of Appeals for the Second Circuit supporting New York officials in Kalshi's dispute over sports event contracts. The November 6 filing addresses a still-pending appeal rather than announcing a new court decision.
The appeal follows a cease and desist order from the New York State Gaming Commission. Kalshi sued the regulator, arguing that its contracts fall under the Commodity Futures Trading Commission (CFTC) and that federal commodities law displaces state gambling rules.
A federal district court denied Kalshi's request for a preliminary injunction after finding that it had not shown a likelihood of success on its preemption claim.
Attorneys general for Ohio and Nevada lead the brief, joined by 35 other states, the District of Columbia and the Northern Mariana Islands. They argue that Congress did not clearly remove state authority over sports betting when it amended the Commodity Exchange Act in 2010.
The filing says states have long regulated gambling through licensing, consumer protection and measures addressing gambling harm.
The coalition also challenges the idea that CFTC oversight supplies equivalent safeguards. It points to state rules on age limits, voluntary exclusion and sports integrity, and argues that the CFTC has no comparable experience regulating those areas. These are the states' arguments, rather than findings by the appeals court.
The legal question is being litigated in several circuits. According to the brief, the Third Circuit has ruled for Kalshi on federal preemption, while the Sixth and Ninth circuits have rejected its position. Cases remain pending elsewhere, including appeals in the Fourth, Eighth and Tenth circuits.
The state filing follows the Second Circuit's November 3 denial of Kalshi's request for an injunction while its appeal proceeds. That procedural order left the merits of the appeal unresolved. The November 6 brief adds support for New York at that stage and does not determine whether Kalshi's contracts are lawful under the state's rules.
On November 4, Global Gaming Insider reported on the Second Circuit's interim injunction decision, which also involved Connecticut appeals brought by Kalshi and Coinbase.
California joined a separate multistate brief concerning Wisconsin's prediction market case in the Seventh Circuit on the same day
