What the SDNY ruling means for New York users — which platforms are accessible, what the appeal means, and what to watch next.
Kalshi's sports-event contracts subject to New York state enforcement
The U.S. District Court for the Southern District of New York denied Kalshi's preliminary injunction request. Kalshi has appealed to the U.S. Court of Appeals for the 2nd Circuit. Confirm access at each platform's official site — access status can change quickly.
Kalshi direct access: Kalshi's sports-event contracts are subject to New York enforcement. Check Kalshi.com for your current access status.
Other platforms: Platforms operating under different legal structures (IBKR ForecastEx, FanDuel Predicts, PredictIt) may have different access status. Confirm at each platform's official site.
Existing positions: Contact your platform directly for guidance. Each platform handles state enforcement differently.
2nd Circuit appeal: Kalshi filed a same-day appeal. The 2nd Circuit will decide whether to grant emergency relief while the appeal proceeds.
SCOTUS pathway: The 3rd Circuit previously ruled that federal law preempts state bans. If the 2nd Circuit affirms the SDNY, a formal circuit split is confirmed. SCOTUS preemption watch →
NY AG enforcement: The New York AG's office is expected to pursue civil penalties and injunctive relief.
On July 7–8, 2026, the U.S. District Court for the Southern District of New York denied Kalshi's motion for a preliminary injunction against the New York State Gaming Commission. The court denied all four factors under the Winter v. Natural Resources Defense Council standard.
Likelihood of success on the merits
The court found New York gambling laws, as applied to Kalshi's sports-event contracts, are not preempted by the Commodity Exchange Act (CEA). The court declined to read the CEA's grant of exclusive jurisdiction as leaving "no room for supplementary state legislation."
Irreparable harm
Kalshi's alleged injuries were characterized as "largely monetary." The cost of geolocating users state-by-state was described as an "ordinary burden" of complying with government regulation.
Balance of equities
The court sided with New York, citing risks to individuals aged 18–24 (a high-risk population for gambling addiction) and concerns about the integrity of college sports.
Public interest
The court recognized New York's sovereign interest in enforcing statutes enacted by its representatives regarding gambling regulation — a traditional state police power.
The court also noted that nothing prevents Kalshi from obtaining a license under New York law — rejecting the argument that federal regulation makes state licensing impossible. The case now proceeds to the motion-to-dismiss phase.
Kalshi filed an appeal to the U.S. Court of Appeals for the 2nd Circuit on the same day as the ruling, seeking an emergency injunction pending appeal.
New York is the most significant federal venue for financial regulation — the SDNY handles the largest volume of major financial and commodities cases in the United States. A loss here carries more weight than adverse rulings in smaller jurisdictions.
Circuit conflict
The 3rd Circuit (New Jersey) previously ruled that the CEA preempts state gambling laws as applied to Kalshi's contracts. The SDNY's opposite conclusion creates a direct conflict — the key condition for Supreme Court review.
Knock-on effects
Legal observers noted that the SDNY ruling could affect Kalshi's other cases — particularly Connecticut, which is also in SDNY jurisdiction — and give other state regulators additional precedent to cite.
NY AG enforcement
The New York Attorney General's office is expected to file a civil enforcement action against Kalshi, seeking restitution, disgorgement, civil penalties, and injunctive relief.
Prior to this ruling, Kalshi had won preliminary injunctions in Nevada and New Jersey. Courts in Maryland and Massachusetts had ruled against the company. The SDNY adds another adverse ruling in a high-profile jurisdiction.
Access status for major platforms is being verified. Confirm current availability at each platform's official site — access changes quickly during ongoing legal proceedings.
| Platform | NY Access |
|---|---|
| Kalshi (direct) | Verifying |
| Polymarket | Verifying |
| FanDuel Predicts | Verifying |
| Robinhood Prediction Markets | Verifying |
| ForecastEx (IBKR) | Verifying |
| PredictIt | Verifying |
Platform access in NY is under active review. Verify directly at each platform before making any decisions. This table updates as platforms publish official access policies for New York.
SDNY ruling
July 7–8, 2026Federal judge denied Kalshi's preliminary injunction. NY state enforcement continues while case proceeds.
Kalshi appeals to 2nd Circuit
Filed July 8, 2026Kalshi filed a same-day appeal seeking review of the PI denial. The 2nd Circuit will decide whether to grant an injunction pending appeal.
NY AG enforcement action
Timeline TBDThe New York AG's office is expected to pursue a civil enforcement action seeking restitution, disgorgement, civil penalties, and injunctive relief.
SDNY motion-to-dismiss briefing
Timeline TBDThe underlying case continues. The core question — whether federal law preempts New York's gambling laws as applied to prediction market contracts — will be argued at the dismissal stage.
2nd Circuit ruling
Timeline TBDThe 2nd Circuit will rule on Kalshi's appeal. If it upholds the SDNY decision, a circuit split with the 3rd Circuit (which previously ruled in Kalshi's favor) would be confirmed — creating conditions for Supreme Court review.
SCOTUS circuit-split tracker →Supreme Court (potential)
If cert grantedA formal circuit split would likely accelerate a SCOTUS cert petition. See our SCOTUS preemption tracker for the full cert pathway.
SCOTUS preemption watch →Before the SDNY ruling, the 3rd Circuit (New Jersey) had ruled in Kalshi's favor — finding that the Commodity Exchange Act preempts state gambling laws as applied to Kalshi's contracts. The SDNY reached the opposite conclusion.
When two federal circuits reach opposite conclusions on the same legal question, it creates a "circuit split" — the clearest trigger for Supreme Court review. A cert petition is already in motion following the 3rd Circuit's ruling.
| Court | Ruling on preemption | Date |
|---|---|---|
| 3rd Circuit (NJ) | CEA preempts state bans — Kalshi wins | 2026 (cite pending court verification) |
| SDNY → 2nd Circuit (NY) | CEA does NOT preempt — State wins | July 7–8, 2026 |
Check your platform's official site or app for current access status in New York. Look for state-specific eligibility pages or help center articles.
If you have open positions, contact your platform's support directly. Ask about how the ongoing legal situation affects your account.
Monitor the 2nd Circuit appeal. An emergency injunction pending appeal — if granted — could restore Kalshi access while the appeal is decided.
Consider platforms with different regulatory frameworks. ForecastEx (IBKR), FanDuel Predicts, and PredictIt operate under different legal structures that may have different access status in NY. Verify at each platform before trading.
SCOTUS & the Circuit Split
What the 2nd/3rd Circuit conflict means for Supreme Court review
Federal vs. State Law
Why prediction markets can be federally legal but state-restricted
State-by-State Access
Full tracker of state restrictions and enforcement actions
CFTC Authority
How the CFTC regulates prediction market platforms
