Judge Analisa Torres denied Kalshi’s request for a preliminary injunction against New York gaming regulators, leaving the state free for now to enforce its gambling laws against the company’s sports-event contracts while the case continues. In a July 7 opinion and order, Torres rejected Kalshi’s argument that the Commodity Exchange Act preempts New York’s gambling laws at this stage and said the company’s state-by-state geolocation costs amount to ordinary regulatory compliance burdens rather than irreparable harm. The ruling sharpens a two-track risk for prediction-market platforms: whether the Commodity Futures Trading Commission ultimately permits sports-related event contracts at the federal level, and whether states can still force venues to block, limit or redesign access before a national framework is settled. The decision comes as the CFTC’s proposed event-contract rules remain open for comment until July 27 following a June 12 Federal Register notice covering public-interest determinations for contracts involving gaming or activity unlawful under federal or state law. The dispute is part of a broader clash over whether sports-related prediction markets are federally regulated derivatives or state-regulated gambling products. The product category has widened beyond Kalshi, with Crypto.com describing its sports-event trading as a CFTC-regulated derivatives feature, Coinbase saying its prediction markets are available to U.S. residents except in Nevada, Gemini saying its affiliate Gemini Titan received a CFTC-designated contract market license, and the CFTC’s designated contract market list recording QCX LLC doing business as Polymarket US.