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A federal judge in New York has denied Kalshi’s attempt to stop the state from applying its gambling laws to prediction platforms, adding to a growing list of legal challenges for the exchange as it touts major World Cup-driven growth.
In Sports Business Journal’s latest betting newsletter, Kalshi said it handled $12.4 billion in volume during 4.5 weeks of World Cup play, or $27 billion including parlays, and added about 1 million new customers during the tournament. The company also used a $1 million sweepstakes tied to picking the World Cup winner and, at times, offered a $15 bonus to new customers who wagered $10 on a game.
For New York readers, the legal piece is the most immediate development. The SBJ report says a federal judge in New York rejected Kalshi’s effort to block the state from enforcing its gambling laws against prediction platforms. That leaves the company facing continued uncertainty in one of the country’s biggest regulated betting markets.
The New York ruling is part of a broader patchwork. According to the report, a Washington state judge issued a preliminary injunction blocking Kalshi from operating there, while a Michigan state judge shut down sports prediction contracts but allowed Kalshi’s non-sports offering to continue. A federal judge in Minnesota also heard arguments involving Kalshi and Polymarket over a state law that could expose them to criminal charges.
Kalshi’s World Cup push went well beyond legal filings. SBJ reported that the company paid $20 million to place its logo alongside ADI Predictstreet beginning in the round of 32, and ran a broader soccer campaign featuring retired World Cup players from eight countries. Kalshi executive Adam Barrick told SBJ the company focused on simpler messaging for more casual fans and said, “We’ve really seen a lot of success with that.”
The wider betting market also appears to have benefited from the tournament. SBJ said legal U.S. sportsbook handle for the World Cup may have approached $5 billion. In June, sportsbook handle across 24 reporting states was tracking 26% higher than the same month last year, with New York sportsbooks up 36% year over year. North Carolina also rose 36%, while Kansas was the only state reported as down.
For players in New York, the key takeaway is that prediction markets remain legally unsettled even as traditional sportsbooks continue to post strong growth. Readers should watch for any appeals or further court action involving Kalshi, as well as future guidance on how New York will treat sports-related prediction contracts. If you bet, do so responsibly.
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Source: As reported by Bill King.
