Are Prediction Markets Legal in New York?

Last updated August 16, 2026. Snapshot — not legal advice.

As of August 16, 2026, New York has a restriction on prediction-market platforms currently in effect.

Prediction markets in New York

Restriction in effect
A federal judge denied Kalshi a preliminary injunction and held that the Commodity Exchange Act does not preempt New York’s gambling law (KalshiEX LLC v. Williams, July 2026) — the leading counterweight to New Jersey. Kalshi has appealed to the Second Circuit, and the CFTC separately sued the state. In July 2026 the Attorney General opened a third front, bringing a state-court special proceeding against KalshiEX LLC under Executive Law § 63(12). New York is now the sharpest federal-versus-state conflict in the country: a state proceeding seeks to shut the platform down while the CFTC has ordered it to keep operating.

Litigation affecting New York

KalshiEX LLC v. WilliamsPreliminary injunction denied (August 2026); CEA held not to preempt New York gambling law.
Injunction denied; on appeal (2d Cir.)
United States v. State of New YorkThe CFTC sued New York (April 2026) to block state enforcement.
Pending
People of the State of New York v. KalshiEX LLCThe New York AG filed an Executive Law § 63(12) special proceeding against KalshiEX LLC seeking an injunction, restitution, disgorgement, and statutory penalties.
Filed — special proceeding

Sports betting & gambling in New York

Legal — Online & Retail

Retail at commercial/tribal casinos from 2019; statewide mobile launched January 2022 The market is regulated by the New York State Gaming Commission. Tribal gaming: Moderate (Oneida, Seneca, and Akwesasne Mohawk compacts).

The federal-vs-state fight

Every entry in this fight turns on the same question: does a prediction-market platform's federal regulation by the CFTC preempt a state's gambling law, or does the state retain authority to restrict it? Courts around the country are answering that question differently — sometimes for the platform, sometimes for the state — and almost every ruling so far is preliminary and under appeal. Treat this page as a snapshot, not a final word.

This page is informational, not legal advice. Nearly every litigation entry referenced here is a preliminary ruling under appeal. Always verify a platform's current, location-specific eligibility directly with the venue before relying on this page.