Kalshi CEO invokes Nasdaq defense in $36B New York legal battle

The legal shift to the U.S. District Court for the Southern District of New York effectively sidelined a pending preliminary injunction request previously filed by the state. New York Supreme Court Justice Melissa A. Crane declared the state’s immediate motion moot following the removal, though the underlying allegations remain unresolved. Attorney General Letitia James claims Kalshi violates state law by offering event contracts without a license from the New York State Gaming Commission, specifically citing risks to consumers and the inclusion of users under the state’s 21-year-old minimum age for sports betting.

Mansour argues that Kalshi is a federally regulated derivatives exchange overseen by the Commodity Futures Trading Commission, not a sportsbook. He contends that the state’s aggressive posture against the company is a reaction from traditional gaming interests wary of new competition. While Mansour touted that New Yorkers earned over $200 million on the platform this year and projected $10 billion in potential state tax revenue, these figures remain unverified company claims. The federal court must now determine whether the case stays in its jurisdiction or is remanded back to the state, a decision that will shape the ongoing conflict between federal oversight and local gambling regulations.