Kalshi Will Continue Offering Sports Event Contracts in New York During Injunction Deliberations

• The New York State Gaming Commission will not enforce a cease-and-desist levied against Kalshi at the moment
• The cease-and-desist notice will not be enforced until the court rules on a preliminary injunction and temporary restraining order from Kalshi
• Kalshi levied a lawsuit against the New York State Gaming Commission over the weekend for its cease-and-desist notice

Kalshi will continue to offer its sports event contracts to New York customers while a judge deliberates on a preliminary injunction and temporary restraining order from the prediction market company.

In a recently filed stipulation and proposed order, the New State Gaming Commission agreed to not enforce a cease-and-desist notice it levied against Kalshi for its sports event contracts until a judge rules on the company’s preliminary injunction and restraining order motion.

Kalshi included the motion in a recent lawsuit it filed against the New York State Gaming Commission, preemptively taking legal action against New York after ordered the prediction market company to cease offering sports event contracts in the state.

New York Sends Kalshi Cease-and-Desist

The New York State Gaming Commission sent a cease-and-desist letter to the prediction market company on Friday, Oct. 24. Just two days later, Kalshi filed a lawsuit against members of the New York State Gaming Commission, claiming the regulatory body is intruding upon the “federal regulatory framework that Congress established for regulating derivatives on designated exchanges.”

“The state’s efforts to regulate Kalshi are both field-preempted and conflict-preempted,” Counsel for Kalshi wrote in the lawsuit.

The lawsuit included a motion for a preliminary injunction and temporary restraining order against the state. If granted by a judge, Kalshi would be able to offer its sports event contracts in the Empire State during the lawsuit proceedings.

In a recent court filing, New York regulators have agreed to “refrain from undertaking enforcement action against Plaintiff regarding any conduct described in the Cease and Desist Letter dated Oct. 24, 2025” pending the court’s ruling on the preliminary injunction and temporary restraining order.

Included in the filing is a timeline for the injunction, with New York counsel’s order to show cause extended to Wednesday, Nov. 26. Kalshi will have a chance to reply by Monday, Dec. 15.

Both parties have also requested oral argument on the injunction, which means that a ruling will likely not come in 2025.

New York Threatens Civil Penalties and Fines

The New York State Gaming Commission’s notice demanded an immediate cease-and-desist from “illegally operating, advertising, promoting, administering, managing, or otherwise making available an unlicensed mobile sports wagering platforming” in the state.

The gaming commission defined Kalshi’s sports event contracts and CFTC-filings as “sports wagering within the meaning of New York law,” which the company does not hold a license for in the state.

“The Commission reserves all rights to investigate further and to levy and collect civil penalties and fines in connection with Kalshi’s prior, current, and any future activity related to sports wagering and/or mobile sports wagering in New York.”