Letitia James

The CFTC has ordered Kalshi to continue operating in New York after the state sued to block its sports prediction markets. The move deepens a regulatory clash over whether event contracts fall under federal derivatives oversight or state gambling law.

New York has sued Kalshi, alleging the prediction-market platform offers sports and event wagers without a gaming license. The state is seeking to bar the company from operating what officials describe as an unlicensed gambling business, while pursuing restitution, damages and civil penalties.