Trump Media and Technology Group (TMTG) has announced the termination of its agreement with Crypto.com, under which the operator’s event contracts were set to be integrated...
On July 7, 2026, U.S. federal judge Analisa Torres denied a motion for a preliminary injunction filed by Kalshi, arguing that New York state gambling laws apply to the prediction market’s contracts.
Kalshi had filed the motion and a temporary restraining order against the New York State Gaming Commission, seeking to prove that sports event contracts are preempted by the Commodity Exchange Act (CEA) and that it has exclusive jurisdiction to regulate prediction platforms. However, Judge Torres ruled that state laws don’t conflict with the CEA and concluded that the factors that are necessary for a preliminary injunction were not present, including irreparable harm, balance of equities, likelihood of success on the merits, and public interest.
The court decision stated:
“This argument lacks merit and misinterprets the authority of Kalshi’s self-certification of its sports-event contracts. The agency’s inaction is not proof that the sports-event contracts are regulated by or permissible under the CEA—and the Court has concluded they are not. There is nothing preventing Kalshi from obtaining a license pursuant to New York law and establishing a category of New York market participants that does not discriminate within that New York-resident category.”
Following the ruling, Kalshi immediately filed for an appeal in the Second Circuit, although the decision has moved the case into a stage for a motion to dismiss.
