Latest
Checked Oct. 21, 2026
NY ยท Checked Oct. 21, 2026
In litigation
New York's attorney general is suing Kalshi and Polymarket US while federal courts weigh the CFTC's bid to block state enforcement.
The Gaming Commission sent Kalshi a cease-and-desist letter on Oct. 24, 2025; Kalshi's federal challenge failed when Judge Analisa Torres denied a preliminary injunction on July 7, 2026, and its Second Circuit appeal is pending after a motions order denied a temporary injunction on July 29, 2026. Attorney General Letitia James sued Coinbase and Gemini in April 2026, Kalshi on July 31, 2026 (seeking restitution, disgorgement and treble penalties, reported at about $36 billion) and Polymarket US on Sept. 24, 2026; the cases were removed to federal court. The CFTC's own suit against New York awaits a preliminary-injunction ruling, and a Aug. 11, 2026 CFTC emergency order directs Kalshi to keep operating. No court order currently stops any platform in the state.
Next: New York's optional reply on the CFTC's new rules due Oct. 231 day
Argued Sept. 14Oct. 23
Resolves Yes if the court grants the federal government's preliminary injunction motion in United States v. New York, in whole or in part. No if it denies it.
S.D.N.Y. No. 1:26-cv-03404. Source: DeFi Rate tracker
Other development, Kalshi
New York's attorney general signed an Ohio-led amicus brief, joined by 38 other states and DC, asking the U.S. Supreme Court to grant New Jersey's petition in Flaherty v. KalshiEX (No. 26-299).
Source: Ohio et al. amicus brief, U.S. Supreme Court No. 26-299
State lawsuit, Polymarket US
The attorney general petitioned New York County Supreme Court against QCX LLC (Polymarket US), alleging unlicensed sports wagering; the case was removed to federal court (No. 1:26-cv-08338).
Source: New York AG verified petition
Operator lawsuit, Polymarket US
Polymarket US sued the attorney general and others in the Southern District of New York (No. 1:26-cv-08345) seeking declaratory and injunctive relief.
Other development
The federal court heard argument on the CFTC's preliminary-injunction motion in United States v. New York; no ruling has issued. New York may respond by Oct. 23, 2026 to the federal plaintiffs' notices on the CFTC's new rules.
Other development, Kalshi
The CFTC issued an emergency order, citing a market emergency, directing Kalshi to keep operating normally despite New York's request for a restraining order.
Source: Bettors Insider
Court order, Kalshi
Judge Jed Rakoff, sitting in for the assigned judge, denied the United States' emergency request for a TRO halting the attorney general's case against Kalshi.
Source: Ball Is Life / Derek Helling
State lawsuit, Kalshi
The attorney general sued Kalshi in New York County Supreme Court (No. 453272/2026), alleging an unlicensed gambling business and seeking an injunction, restitution, disgorgement and treble penalties; Kalshi removed the case to federal court.
Court order, Kalshi
A Second Circuit motions order denied Kalshi a temporary injunction pending appeal and referred its motion to a three-judge panel; the appeal is to be heard in tandem with two related appeals.
Court order, Kalshi
Judge Analisa Torres denied Kalshi's preliminary injunction, finding preemption unlikely, and dismissed the Gaming Commission itself on immunity grounds; Kalshi appealed (2d Cir. No. 26-1835).
Other development
The United States and the CFTC sued New York, the governor, the attorney general and Gaming Commission officials (S.D.N.Y. No. 1:26-cv-03404) to block state enforcement against CFTC-registered markets.
State lawsuit, Coinbase, Gemini
The attorney general sued Coinbase Financial Markets and Gemini Titan in New York County Supreme Court over unlicensed gambling; both cases were removed to federal court.
Source: DeFi Rate New York guide
Regulator guidance
The attorney general issued an industry alert about prediction markets, according to CBS Sports.
Source: CBS Sports
Operator lawsuit, Kalshi
Kalshi sued the Gaming Commission and its commissioners in the Southern District of New York (No. 1:25-cv-08846), arguing federal preemption.
Cease-and-desist, Kalshi
The State Gaming Commission ordered Kalshi to stop offering what it called an unlicensed mobile sports wagering platform.
ORACLE Act (A 9251 in the 2025 session; 2026 number not confirmed)PendingJan. 7, 2026
ORACLE Act
Assembly bill sponsored by Clyde Vanel, reintroduced in January 2026, that would bar contracts on single sporting events, elections, deaths, catastrophes and individual securities, with fines up to $1 million per day.
Source: defirate.com