Kalshi Sues New York Regulators After Crypto.com's Nevada Loss

Kalshi has filed a federal lawsuit against New York regulators to prevent the state from categorizing its sports prediction markets as illegal gambling, following a cease-and-desist letter from the New York State Gaming Commission. This action comes on the heels of a similar defeat faced by rival Crypto.com in Nevada, where a judge denied their request for an injunction against state regulations. The federal lawsuit aims to clarify that federal law supersedes state gambling regulations for contracts traded on platforms overseen by the Commodity Futures Trading Commission (CFTC). By filing first, Kalshi seeks to frame the legal battle around jurisdictional authority rather than the legality of the contracts themselves. Legal experts note that previous court rulings have suggested that the CFTC holds exclusive jurisdiction over such contracts. Kalshi's proactive approach aims to protect its operations amidst increasing regulatory scrutiny across various states.

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