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Federal court denies Kalshi’s request for injunctive relief against New York officials

Legal Writer

Publish Date: Jul 09, 2026

Fact checked by: Matt Moreno

Key Points

Kalshi had asked the court to protect it from potential enforcement actions as its case against New York officials progresses
Kalshi has already expressed its intent to appeal the decision
Ruling potentially leaves Kalshi vulnerable to enforcement actions but other litigation is pending

The United States District Court for the Southern District of New York has denied a request from Kalshi for injunctive relief against several New York officials. The decision theoretically means that the New York State Gaming Commission can proceed with enforcing the cease-and-desist order that it sent to Kalshi in October 2025.

However, Kalshi quickly filed a notice of appeal on Wednesday, meaning that the U.S. Second Circuit Court will weigh in on whether the Southern District of New York rightfully adjudicated the motion for a preliminary injunction. That may not be the only source of aid for Kalshi’s interests in New York, either.

(Photo by Samuel Boivin/NurPhoto via Getty Images)

Southern District of New York finds fault with Kalshi and its need for injunctive relief

Kalshi sued New York State Gaming Commission (NYSGC) Executive Director Robert Williams in the Southern District of New York just days after the NYSGC sent a letter demanding that Kalshi stop offering sports event contract trading in the state in October. On Wednesday, that court responded to Kalshi’s request for protection against enforcement of that demand while the trial against Williams and other New York officials plays out.

In the order, Judge Analisa Torres stated that Kalshi’s case in Kalshi v. Williams for why the court should grant enjoin New York officials from enforcing state gambling laws “failed to show likelihood of success on the merits as it relates to the issue of preemption” and “the irreparable injury factor weighs against the granting of a preliminary injunction.” Judge Torres also found that “the balance of the equities and the public’s interest weigh in favor of Defendants.”

Torres granted the request of the NYSGC as an entity to be removed from the field of defendants as well, although the case against its individual members will move forward. This ruling was only on the request for a preliminary injunction and the Southern District of New York still has to render a ruling on the merits of Kalshi’s case like whether the U.S. Commodity Exchange Act preempts New York law in regard to its operations.

However, the question of injunctive relief for Kalshi is not completely settled, as Kalshi has already notified the Southern District of New York of its intent to appeal the ruling on the motion for a preliminary injunction. There is other litigation ongoing concerning New York and prediction market exchanges, too.

Appeal, CFTC case add intrigue to circumstances

The Second Circuit could overturn the district court’s ruling on the motion for injunctive relief, but that decision could take months to come down. In the meantime, the U.S. Commodity Futures Trading Commission (CFTC) has an ongoing case against some of the same authorities in New York regarding attempts to enforce state laws against exchanges that the CFTC regulates like Kalshi.

The CFTC has also asked the Southern District of New York for a preliminary injunction, filing that motion in USA v. New York in early May. Judge Victor Marrero is handling that case.

Should Marrero grant the request, it would have much of the same effect of the relief that Kalshi is seeking from the Second Circuit as long as it is in effect. However, the time frames could differ, as the preliminary injunction would only be effective until the Southern District of New York rules on the merits of USA v. New York, not Kalshi v. Williams.

Because of the potential overlap, though, the NYSGC may not move forward with actual enforcement of its demands around sports event contract trading on Kalshi despite its win in Kalshi v. Williams. For the moment, though, the defendants have the upper hand in that litigation.

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