Federal Judge Analisa Torres, best known for the SEC’s lawsuit against Ripple, ruled against prediction market platform Kalshi in a New York gambling case. This represents a significant loss for the prediction market company, allowing New York State to continue enforcing its gambling laws against the company’s sporting event contracts.
Ripple lawsuit judge Torres denies Calci’s preliminary injunction against New York
SDNY Judge Analisa Torres, who presided over the SEC’s high-profile XRP lawsuit against Ripple, denied Calci’s request for a preliminary injunction.
Judge Torres found that New York State’s gambling laws applied to calci contracts related to sporting events and were not preempted by the Commodity Exchange Act (CEA). The decision paves the way for the lawsuit to continue.
in KalshiEX LLC v. WilliamsCalci argued that contracts for sports-related events qualify as CFTC-regulated swaps that are traded on a designated contract market (DCM). It asked the court to approve a temporary restraining order and a preliminary injunction to prevent New York regulators from enforcing gambling laws against the prediction market.
New York Attorney General Letitia James disagrees that federal oversight preempts state gambling laws. Her office is now expected to file a civil enforcement action against Calci in state court seeking restitution, restitution, civil penalties, and injunctive relief.
According to sports betting and gaming law attorney, Daniel Wallach, this is a major loss for Calcio as it could impact other ongoing cases. Prediction markets may have to obtain state licenses or restrict operations in New York.
BREAKING: Kalci denied a preliminary injunction in the crucial Southern District of New York case by Judge Analisa Torres. A major and significant loss to the financial capital of the United States, with potential impacts in other cases (particularly Connecticut and other New York City lawsuits). pic.twitter.com/pLCobVo21S
– Danielle Wallach (@WALLACHLEGAL) July 8, 2026
Challenges faced by prediction markets in other countries
Kalshi and Polymarket prediction markets are currently facing several lawsuits and state-level regulatory actions over their event contracts, as well as market manipulation and insider trading concerns.
Recently, Kentucky joined other US states Prediction market operators Kalshi and Polymarket are being suedClaiming that they were offering illegal sports betting in the state. Kentucky Attorney General Russell Coleman claimed that they were subject to gambling laws, not financial laws.
Notably, Calci may appeal Judge Torres’ ruling related to the Ripple lawsuit to obtain an immediate injunction pending this appeal. However, the momentum has clearly turned against expected markets, despite the CFTC’s support for Kalshi and Polymarket.
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