- Two bipartisan coalitions of AGs filed amicus briefs in support of New York and Wisconsin’s authority to enforce state sports gaming and gambling laws against prediction market operator Kalshi. The filings argue that federal commodities laws should not preempt state gambling regulations and that states retain authority to oversee gambling activities and establish consumer protections.
- In the New York case, KalshiEX, LLC v. Williams, et al, Kalshi sued the New York State Gaming Commission after receiving a cease-and-desist order. A federal district court denied Kalshi’s request for a preliminary injunction, finding that state gambling laws governing its sports event contracts were not preempted by federal law.
- The Wisconsin litigation, Commodities Futures Trading Commission v. State of Wisconsin, began after the state filed an action against Kalshi, Coinbase, Robinhood, Polymarket and Crypto.com. The companies moved the cases to federal court, prompting the Commodity Futures Trading Commission (CFTC) to file a separate lawsuit seeking to prevent Wisconsin from enforcing its gambling laws. A federal district court denied the CFTC’s request for a preliminary injunction blocking Wisconsin’s enforcement actions. The CFTC has appealed that decision to the U.S. Court of Appeals for the Seventh Circuit.