The U.S. District Court for the Southern District of New York sided with New York State in the matter of the New York State government's attempt to regulate sports betting on the prediction market platform Kalshi. Eleanor Terrett, host of crypto policy publication Crypto in America, announced via X that "Southern District of New York Judge Analisa Torres rejected Kalshi's request to prevent the application of New York State's gambling laws. Judge Torres ruled that applying New York State's gambling laws to sports betting does not conflict with the federal Commodity Exchange Act (CEA). As a result, the case moves to the dismissal motion stage, which reviews whether to end the lawsuit before a substantive ruling." Analisa Torres is the judge who previously handled the lawsuit between Ripple and the U.S. Securities and Exchange Commission (SEC). Currently, a debate is underway in the United States regarding whether individual states or the federal agency, the Commodity Futures Trading Commission (CFTC), should regulate prediction markets.
