Prediction Markets Have Outgrown the Law, Says Rafferty Domnick Cunningham & Yaffa Attorney as New York Sues Kalshi
PALM BEACH GARDENS, Fla., Aug. 03, 2026 (GLOBE NEWSWIRE) — A lawsuit filed on July 31st in the Supreme Court of New York by New York Attorney General Letitia James against prediction market platform Kalshi marks another major chapter in a rapidly expanding legal battle over who has the authority to regulate prediction markets—states under gambling laws or the federal government through the Commodity Futures Trading Commission (CFTC).
The lawsuit alleges Kalshi is operating an illegal gambling business in New York, while Kalshi maintains it is a federally regulated commodities exchange subject to exclusive federal oversight. Similar disputes are unfolding across the country, with conflicting court decisions leaving the industry’s future uncertain.
