US court denies Kalshi's bid to block NY sports betting rules

A U.S. court has ruled in favor of New York State in a dispute with prediction market platform Kalshi over the regulation of sports betting. Eleanor Terrett, host of Crypto-in-America, reported via X that Judge Analisa Torres of the Southern District of New York denied Kalshi's request to prevent the state from applying its gambling laws to the platform's offerings. Judge Torres found that applying New York's gambling laws to sports betting does not conflict with the federal Commodity Exchange Act (CEA). As a result, the case will now proceed to the motion to dismiss stage. Torres previously presided over the lawsuit between Ripple and the U.S. Securities and Exchange Commission (SEC). The ruling comes amid an ongoing debate in the U.S. over whether prediction markets should be regulated by individual states or the federal Commodity Futures Trading Commission (CFTC).