TLDR A New York federal judge denied Kalshi’s second injunction request in three weeks. Judge Analisa Torres said her opinion had not changed since her July 9 ruling. Kalshi filed an appeal with the Second Circuit Court of Appeals on Thursday. A Minnesota judge blocked that state’s ban on prediction markets the same day. The CFTC argued federal law takes precedence over state gambling regulations in both cases.
A federal judge in Manhattan denied Kalshi’s request for an emergency injunction on Monday. The ruling blocks the prediction market operator from getting protection against New York state gaming regulators for now.
This is the second time in three weeks that U.S. District Judge Analisa Torres has turned down Kalshi’s request. The company had filed its first motion earlier in July, and Torres rejected it on July 9.
Kalshi filed a second motion on July 15. The company asked for relief while it appealed the case to the U.S. Second Circuit Court of Appeals.
The New York State Gaming Commission opposed Kalshi’s request. Still, the commission agreed to hold off on enforcement action until this Thursday so Kalshi could pursue the injunction.
In a three-page order, Torres wrote that Kalshi used its filing mostly to argue why its appeal would succeed. She said the company asked for something more drastic than a routine injunction.
Torres also pointed to harms the state would face. She wrote that halting enforcement of state gaming rules would cause problems for New York regulators.
Appeal Now Sits With Second Circuit
Kalshi filed its appeal with the Second Circuit on Thursday. In that filing, the company argued Torres made an error in her first ruling.
Kalshi’s court filing said the company would suffer harm without relief. It claimed it would be forced to choose between