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Kalshi is pushing back publicly after a federal judge declined to stop New York from enforcing state gambling laws against the prediction market platform.
Appearing on Bloomberg TV, Kalshi Head of Enforcement Robert DeNault said the company is “not a sportsbook or casino” and argued that a federally regulated exchange should not be exposed to state criminal enforcement at an attorney general’s discretion. The dispute matters in New York because the state is seeking to shut Kalshi down.
According to the source article, U.S. District Judge Analisa Torres denied Kalshi’s bid to block enforcement, while New York Gov. Kathy Hochul filed suit against the company.
Kalshi says its markets are not sportsbook-style wagering
DeNault said Kalshi does not operate like a casino or traditional sportsbook.
“We don’t run a sportsbook where we profit when people lose,” DeNault said on Bloomberg TV. “What we do is run open marketplaces where users define the price point.”
He also argued that New York’s position creates a broader regulatory problem for federally licensed exchanges. In his words, “That’s not how any exchange in U.S. history has ever operated.”
Kalshi is described in the source report as an online prediction market platform regulated by the Commodity Futures Trading Commission.
Enforcement and surveillance are central to Kalshi’s defense
DeNault also pointed to Kalshi’s internal monitoring as part of the company’s case that it is operating under a regulated market structure.
He said Kalshi handles roughly 250 investigations per quarter and has made as many as 50 referrals to the CFTC this year.
The report cited one recent example involving Gabriel Perez, a White House teleprompter operator, whose trading on contracts tied to Trump speech “Mentions” allegedly produced more than $100,000 in profit. DeNault said Kalshi’s surveillance team flagged the activity and referred it to the CFTC.
“Our surveillance team promptly flagged and referred these trades to the CFTC, and we are cooperating and assisting regulators,” he said.
What New York readers should watch
For New York, the main issue is whether the state can treat Kalshi’s contracts as falling under its gambling laws even though the company says it operates as a federally regulated exchange. The next major development will be any further court action or regulatory response tied to the state’s case and Kalshi’s defense.
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Source: As reported by casino.com.
