{"id":433530,"date":"2026-07-10T01:04:37","date_gmt":"2026-07-09T19:34:37","guid":{"rendered":"https:\/\/dripp.zone\/news\/kalshis-court-loss-shows-federal-approval-may-still-leave-prediction-markets-fenced-off-by-states-crypto-news\/"},"modified":"2026-07-10T02:30:24","modified_gmt":"2026-07-09T21:00:24","slug":"kalshis-court-loss-shows-federal-approval-may-still-leave-prediction-markets-fenced-off-by-states-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/kalshis-court-loss-shows-federal-approval-may-still-leave-prediction-markets-fenced-off-by-states-crypto-news\/","title":{"rendered":"Kalshi\u2019s court loss shows federal approval may still leave prediction markets fenced off by states &#8211; Crypto News"},"content":{"rendered":"<p><\/p>\n<div>\n<p>A New York federal court has returned prediction-market access to\u00a0state hands just weeks before the CFTC closes comments on national event-contract rules.<\/p>\n<p>In a July 7 <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/ag.ny.gov\/sites\/default\/files\/court-filings\/kalshiex-llc-v-new-york-state-gaming-commission-et-al-opinion-and-order-2026.pdf\">opinion and order<\/a>, Judge Analisa Torres of the Southern District of New York denied KalshiEX LLC\u2019s request for a preliminary injunction to block New York gaming officials from enforcing state gambling law against its sports-event contracts while the case proceeds.<\/p>\n<p>The decision is preliminary. It leaves the merits open, but it rejects Kalshi\u2019s bid for immediate relief on the argument that the Commodity Exchange Act preempts New York\u2019s gambling laws as applied to those contracts.<\/p>\n<p>The access risk now has two tracks: whether the Commodity Futures Trading Commission accepts event contracts at the federal level, and whether states can force platforms to block, limit, or redesign access before the federal framework is finished.<\/p>\n<p><a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/07\/ig_0ec8ad5dfac0e0f7016a4f3f8309b881918da468dc5cf0d538.png\" target=\"_blank\" rel=\"noopener\"><noscript><\/noscript><img loading=\"lazy\" decoding=\"async\" class=\"lazyload aligncenter wp-image-546835\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/07\/ig_0ec8ad5dfac0e0f7016a4f3f8309b881918da468dc5cf0d538.png\" alt=\"Infographic showing Kalshi\u2019s New York order between federal CFTC rulemaking and state access risks for prediction markets.\" width=\"720\" height=\"1080\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/07\/ig_0ec8ad5dfac0e0f7016a4f3f8309b881918da468dc5cf0d538.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/07\/ig_0ec8ad5dfac0e0f7016a4f3f8309b881918da468dc5cf0d538-200x300.png 200w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/07\/ig_0ec8ad5dfac0e0f7016a4f3f8309b881918da468dc5cf0d538-683x1024.png 683w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/07\/ig_0ec8ad5dfac0e0f7016a4f3f8309b881918da468dc5cf0d538-768x1152.png 768w\" data-sizes=\"(max-width: 720px) 100vw, 720px\"\/><\/a><\/p>\n<div class=\"cs-article-embed\"> <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/cryptoslate.com\/washington-prediction-market-federal-state-fight\/\" class=\"cs-article-embed__link\"><\/p>\n<div class=\"cs-article-embed__media\"> <noscript><img width=\"1024\" height=\"683\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/04\/washington-prediction-market-1024x683.jpg\" alt=\"CFTC sues 3 states in bid to redefine crypto prediction markets as federal products\" loading=\"lazy\" decoding=\"async\"\/><\/noscript><img class=\"lazyload\" width=\"1024\" height=\"683\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/04\/washington-prediction-market-1024x683.jpg\" alt=\"CFTC sues 3 states in bid to redefine crypto prediction markets as federal products\" loading=\"lazy\" decoding=\"async\"\/><\/div>\n<div class=\"cs-article-embed__body\"> <span class=\"cs-article-embed__related-reading\">Related Reading<\/span><\/p>\n<h3 class=\"cs-article-embed__title\">CFTC sues 3 states in bid to redefine crypto prediction markets as federal products<\/h3>\n<p>Federal lawsuits aim to override state gambling laws, putting the future of sports prediction markets on a fast legal track.<\/p>\n<p> <span class=\"cs-article-embed__meta-item\">Apr 3, 2026<\/span> <span class=\"cs-article-embed__meta-divider\">\u00b7<\/span> <span class=\"cs-article-embed__meta-item\">Gino Matos<\/span><\/p>\n<\/div>\n<p> <\/a><\/div>\n<h2>The federal clock is still running<\/h2>\n<p>The order landed while the CFTC\u2019s proposed prediction-market rules remain open for comment. The agency\u2019s June 12 <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.federalregister.gov\/documents\/2026\/06\/12\/2026-11854\/prediction-markets-public-interest-determinations\">Federal Register notice<\/a> gives interested parties until July 27 to comment on proposed public-interest determinations for event contracts, including contracts involving gaming or activity unlawful under federal or state law.<\/p>\n<p>A related <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.cftc.gov\/PressRoom\/PressReleases\/9249-26\">CFTC release<\/a> said the framework would apply to growth in event contracts, including those referencing sporting events.<\/p>\n<p>Torres\u2019s order sharpened the access issue before that process closes. The court rejected Kalshi\u2019s argument that CFTC-designated contract market rules requiring impartial access effectively require nationwide access to sports contracts.<\/p>\n<p>It also treated the cost of geolocating users on a state-by-state basis as an ordinary regulatory compliance burden, undercutting Kalshi\u2019s irreparable harm argument.<\/p>\n<p>That part of the ruling carries the most operational weight for venues. Geofencing may be expensive, disruptive, and inconsistent with a national market, but the order leaves room for states to keep pressing their gambling-law theories while platforms litigate.<\/p>\n<div id=\"cs-inline-newsletter-6a4ff1c0d9016\" class=\"cs-inline-newsletter\" data-inline-newsletter=\"\">\n<div class=\"cs-inline-newsletter__inner\">\n<div class=\"cs-inline-newsletter__content\"> <span class=\"cs-inline-newsletter__eyebrow\">CryptoSlate Daily Brief<\/span><\/p>\n<h3 class=\"cs-inline-newsletter__title\">Daily signals, zero noise.<\/h3>\n<p class=\"cs-inline-newsletter__copy\">Market-moving headlines and context delivered every morning in one tight read.<\/p>\n<p> <span><i class=\"fa-regular fa-bolt\" aria-hidden=\"true\"\/> 5-minute digest<\/span> <span><i class=\"fa-regular fa-star\" aria-hidden=\"true\"\/> 100k+ readers<\/span><\/p>\n<\/div>\n<div class=\"cs-inline-newsletter__form-shell\">\n<p class=\"cs-inline-newsletter__privacy\">Free. No spam. Unsubscribe any time.<\/p>\n<p> <i class=\"fa-regular fa-circle-xmark\" aria-hidden=\"true\"\/> <span>Whoops, looks like there was a problem. Please try again.<\/span><\/p>\n<p> <i class=\"fa-regular fa-circle-check\" aria-hidden=\"true\"\/> <span>You\u2019re subscribed. Welcome aboard.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"cs-article-embed\"> <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/cryptoslate.com\/how-a-disputed-1-billion-claim-became-a-powerful-weapon-against-prediction-markets\/\" class=\"cs-article-embed__link\"><\/p>\n<div class=\"cs-article-embed__media\"> <noscript><img width=\"1024\" height=\"576\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/05\/prediction-market-states-1024x576.jpg\" alt=\"How a disputed $1 billion claim became a powerful weapon against prediction markets\" loading=\"lazy\" decoding=\"async\"\/><\/noscript><img class=\"lazyload\" width=\"1024\" height=\"576\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/05\/prediction-market-states-1024x576.jpg\" alt=\"How a disputed $1 billion claim became a powerful weapon against prediction markets\" loading=\"lazy\" decoding=\"async\"\/><\/div>\n<div class=\"cs-article-embed__body\"> <span class=\"cs-article-embed__related-reading\">Related Reading<\/span><\/p>\n<h3 class=\"cs-article-embed__title\">How a disputed $1 billion claim became a powerful weapon against prediction markets<\/h3>\n<p>America\u2019s gambling lobby says that prediction markets are draining public money from states and tribes, as US gambling revenue hits record highs.<\/p>\n<p> <span class=\"cs-article-embed__meta-item\">May 31, 2026<\/span> <span class=\"cs-article-embed__meta-divider\">\u00b7<\/span> <span class=\"cs-article-embed__meta-item\">Andjela Radmilac<\/span><\/p>\n<\/div>\n<p> <\/a><\/div>\n<p>The order binds Kalshi\u2019s New York case. The product category is already broader.<\/p>\n<p>Crypto.com describes its <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/help.crypto.com\/en\/articles\/10208780-sports-event-trading\">sports-event trading<\/a> as a CFTC-regulated derivatives feature. Coinbase says its <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/help.coinbase.com\/en\/coinbase\/trading-and-funding\/prediction-markets\/intro\">prediction markets<\/a> are available to U.S. residents, but not in Nevada.<\/p>\n<p>Gemini announced that\u00a0its affiliate, Gemini Titan, received a\u00a0<a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/investors.gemini.com\/news-releases\/news-release-details\/gemini-receives-us-license-prediction-markets\" target=\"_blank\" rel=\"noopener\">CFTC-designated contract market<\/a><a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/investors.gemini.com\/news-releases\/news-release-details\/gemini-receives-us-license-prediction-markets\">\u00a0license<\/a>, and the CFTC\u2019s own <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.cftc.gov\/IndustryOversight\/IndustryFilings\/TradingOrganizations\">DCM list<\/a> records QCX LLC doing business as Polymarket US.<\/p>\n<p>CryptoSlate has previously tracked how <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/cryptoslate.com\/tennessee-orders-refunds-kalshi-fights-back-who-regulates-prediction-markets-cftc-or-states\/\">state-vs-CFTC fights<\/a> can turn prediction-market compliance into refunds, blocked access, and venue-by-venue risk. New York adds a new pressure point because the court said state gambling law can complement federal commodities law, at least at this stage.<\/p>\n<div class=\"cs-article-embed\"> <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/cryptoslate.com\/crypto-rails-made-prediction-markets-global-gambling-laws-may-make-them-local-again\/\" class=\"cs-article-embed__link\"><\/p>\n<div class=\"cs-article-embed__media\"> <noscript><img width=\"1024\" height=\"576\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/06\/southkorea-prediction-market-1024x576.jpg\" alt=\"Crypto rails made prediction markets global, gambling laws may make them local again\" loading=\"lazy\" decoding=\"async\"\/><\/noscript><img class=\"lazyload\" width=\"1024\" height=\"576\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/06\/southkorea-prediction-market-1024x576.jpg\" alt=\"Crypto rails made prediction markets global, gambling laws may make them local again\" loading=\"lazy\" decoding=\"async\"\/><\/div>\n<div class=\"cs-article-embed__body\"> <span class=\"cs-article-embed__related-reading\">Related Reading<\/span><\/p>\n<h3 class=\"cs-article-embed__title\">Crypto rails made prediction markets global, gambling laws may make them local again<\/h3>\n<p>South Korea\u2019s reported probe into Polymarket users follows broader action against event-contract platforms.<\/p>\n<p> <span class=\"cs-article-embed__meta-item\">Jun 7, 2026<\/span> <span class=\"cs-article-embed__meta-divider\">\u00b7<\/span> <span class=\"cs-article-embed__meta-item\">Gino Matos<\/span><\/p>\n<\/div>\n<p> <\/a><\/div>\n<p>The next signal is whether the CFTC\u2019s final rule reduces that fragmentation or leaves platforms with a national listing process and local access map. Until then, <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/cryptoslate.com\/prediction-markets\/\">prediction markets<\/a> can win federal recognition and still face state-by-state limits on who can actually trade.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A New York federal court has returned prediction-market access to\u00a0state hands just weeks before the CFTC closes comments on national event-contract rules. In a July 7 opinion and order, Judge Analisa Torres of the Southern District of New York denied KalshiEX LLC\u2019s request for a preliminary injunction to block New York gaming officials from enforcing [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":433535,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-433530","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/433530","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=433530"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/433530\/revisions"}],"predecessor-version":[{"id":433537,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/433530\/revisions\/433537"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/433535"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=433530"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=433530"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=433530"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}