Prediction Markets Firm Kalshi Sues NY Gambling Regulator Alleging Overreach, Faces Setback in MA

Written by :

C Costigan

Published on :

30 October, 2025

The prediction market firm Kalshi has sued New York State's gambling regulator over what it deems to be "overreach", suggesting the state agency is overstepping its authority by attempting to regulate sports-betting operations that fall exclusively under federal jurisdiction.

In a lawsuit filed Monday in Manhattan US District Court, Kalshi said that it’s operating legally in New York under federal law. Kalshi accused state regulators of threatening the company over its so-called event contracts and asked a federal judge to immediately block the state from any enforcement action.

Kalshi has been embroiled in legal battles with a handful of US states including New York and Nevada.

Recent rulings in Massachusetts and Nevada challenge the company’s claim that its sports betting contracts fall solely under federal CFTC jurisdiction.

On Wednesday, a judge has granted a Massachusetts motion to remand its lawsuit against Kalshi back to state court.

The ruling gives Massachusetts an advantage in the case, moving the legal battle to a forum where state gambling laws may carry more weight than arguments based on federal preemption, per YogoNet.

Kalshi has enjoyed some early success in the courts as the company has embarked on a massive national ad blitz both on television and online.

In April 2025, Kalshi had a preliminary victory in a Nevada court when a federal judge issued an injunction that temporarily blocked state regulators from enforcing gaming laws against the prediction market.

Top Search Queries Gambling911 (Last 48 Hours)

gambling911
jon gruden college football coach odds
internet invitational odds
virginia tech head coach odds
gambling 911
virginia tech next head coach odds
omar fateh odds
virginia tech football coach odds
lsu head coach odds
bet on government shutdown
virginia tech next coach odds
mazi vs in jail
nba gambling scandal
odds for lsu next coach
lsu next coach betting odds
minneapolis mayor election odds
nfl assistant coach of the year odds
next virginia tech football coach odds
lsu football coach odds
assistant coach of the year odds
biletnikoff award odds
lsu next head coach odds
minneapolis mayor odds
911 casino
braves manager odds

Top News Headlines (October 29, 2025)

(Gambling News) - Nevada Gambling Revenue Reaches $11.7 Billion in 9 Month of 2025 - Nevada's gambling revenue increased by just 1% in the first nine months of 2025 to $11.66 billion, as September recorded a 2% drop.

-----

(Prediction Markets) - Nevada Current Digs Deep Into Truth Social New Deal With Crypto.com - Dana Gentry of The Nevada Current suggests a potential conflict of interest with the newly announced Crypto.com arrangement that will now allow US President Donald Trump's Truth Social platform to take bets.

Gentry writes: "President Donald Trump’s latest business partnership may place him at odds with Nevada and other states suing to stop prediction markets from accepting what regulators say are nothing more than illegal bets."
Crypto.com, the company teaming up with Trump’s Truth Social to allow its users to make crypto bets on the outcome of future events, is suing Nevada and other states that seek to impose gambling oversight on the platform, which is regulated by the Commodity Futures Trading Commission.
Mark Masnick, a journalist at Techdirt, pointed out the potential conflicts of a president having a financial interest in a prediction market. “So the company the president currently owns is teaming up with a cryptocurrency company to create a prediction market, which will take bets… on things the president himself has quite a lot of control over?” Masnick wrote on social media. “Gosh, I’m sure nothing bad will happen.”
Devin Nunes, CEO of Trump Media & Technology Group, said: “For too long, global elites have closely controlled these markets — with Truth Predict, we're democratizing information and empowering everyday Americans to harness the wisdom of the crowd, turning free speech into actionable foresight.”

------

(Gambling Crime) - Terry Rozier Faced An $8 Million Tax Lien the Same Year as an Alleged Gambling Scheme - New court documents show the NBA player was hit with a substantial IRS lien months before his arrest on federal gambling charges. Rozier is among nearly three dozen individuals alleged to have been involved in a massive gambling scheme tied to the NBA. Jim Trusty, Rozier's attorney, said his client did not owe the amount that was listed on the lien. "Terry never owed anyone $8 million," Trusty told ESPN in a statement Wednesday morning. "He owed $9000 of the total $8 million in taxes from 2021, and it has been paid. We just need the IRS to help remove the now-defunct lien."

-----

(Gambling News) - NCAA Delays New Sports Betting Rules for Student-Athletes - The NCAA and its Board of Directors has voted to delay the implementation of its new sports betting rules for student-athletes. The initiative would have permitted student-athletes to gamble on professional sports. The new policy is being delayed until November 21. (read more at Gambling911.com)

-----

(Gambling News) - New York's Problem Gambling Surge Could Spur New Sports Betting Rules - The pattern of addiction has been lucrative for New York, which generated about $1 billion in revenue for the state from the industry through taxes last year. The revenue is the result of more than $22.8 billion wagered via mobile sports betting operators in 2024. That’s more than New York state has in its reserve fund. Assemblywoman Carrie Woerner, a Democrat who chairs the Assembly Committee on Racing and Wagering has some well-founded concerns. Woerner, who co-chaired a hearing in Albany Wednesday on problem gambling and sports betting, said she is not “opposed to gambling and believe adults have the right to spend their money as they choose.” “But when the state legalizes an activity and derives more than $1 billion in tax revenue from it, I think we have a responsibility to ask whether we have done enough to regulate an activity that can cause addiction and harm to New Yorkers,” she said. (source: CapitolConfidential)

-----

(Gambling News, Crime) - NBA Gambling Scandal Latest: League Sounds Memo to Teams, Looking Into Injury Reporting Policy - At the heart of the illegal gambling indictment is knowledge about injuries. Here is the heart of the federal indictment: “Prior to the Hornets’ March 23, 2023 game against the New Orleans Pelicans, Rozier informed the defendant Deniro Laster that Rozier was going to prematurely remove himself from the game in the first quarter due to a supposed injury and not return to play further. Rozier provided this information to Laster for the purpose of enabling Laster to place wagers based on this information.”

----

(Gambling, Crime) - Inside the Emmanuel Clase Gambling Probe - Cleveland.com takes a deep dive into the case of Guardians closer Emmanuel Clase, which hangs in the balance as Major League Baseball’s investigation into alleged gambling violations stretches into its fourth month with no resolution in sight. While Clase maintains his innocence, Cleveland Baseball Talk Podcast hosts Joe Noga and Paul Hoynes paint a bleak picture of the All-Star closer’s future with the team.

- Chris Costigan, Gambling911.com Publisher

Business & Financial

Gambling Companies

Gambling News