Kalshi has filed a federal lawsuit against the New York State Gaming Commission, arguing that the state is interfering with federal oversight of derivatives and event contracts. The company says only the Commodity Futures Trading Commission (CFTC) has the power to regulate futures trading under federal law, a principle that’s central to its case. The Kalshi lawsuit New York case seeks both declaratory and injunctive relief to stop the state from taking enforcement action.

  • Kalshi claims New York’s gaming regulators have threatened it with civil penalties and fines if it offers event contracts within the state. The company says those threats directly conflict with federal law and could endanger its federally approved exchange status. It’s seeking a court order to block any such enforcement.

  • The complaint cites the Commodity Exchange Act, which gives the CFTC “exclusive jurisdiction” over futures and derivatives markets. Kalshi argues that this framework was designed to prevent a patchwork of state-level regulation that could cause what Congress once called “total chaos” in the market.

  • Kalshi’s filing also references multiple court decisions that have previously confirmed Congress’s intent to preempt state interference in futures trading. The company points to rulings such as Leist v. Simplot and American Agricultural Movement v. Board of Trade to reinforce that interpretation.

  • The New York Gaming Commission, led by Executive Director Robert Williams and several commissioners named as defendants, is accused of intruding on the CFTC’s jurisdiction. The complaint asserts that the commission’s attempts to classify Kalshi’s activity as “gambling” are inconsistent with federal definitions.

  • Kalshi asks the court for both declaratory and permanent injunctions preventing New York from enforcing its gambling or racing laws against the company. The relief sought would effectively bar the state from regulating or penalizing any activity related to Kalshi’s federally designated contract market.

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