Judge Says CFTC Kalshi Order ‘Smacks of a Collusive Effort’ in Novig Ruling

A federal judge in Manhattan has refused to stop New York from applying its gambling laws to Novig, ruling that the prediction market’s sports contracts “are sports betting.” The judge also said the CFTC’s emergency order shielding Kalshi “smacks of a collusive effort” between the regulator and the company it regulates, potentially setting up a larger regulatory fight. In a 35-page opinion filed Nov. 10 , Judge McMahon of the U.S. District Court for the Southern District of New York denied Novig’s motion for a preliminary injunction against New York Attorney General Letitia James and the state’s Gaming Commission. Novig had sued in August, arguing that the Commodity Exchange Act gives the CFTC exclusive jurisdiction over its contracts.

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