US Tries to Override New York Gambling Laws, Orders Kalshi to Keep Operating (arstechnica.com)
- Reference: 0184941968
- News link: https://yro.slashdot.org/story/26/08/12/1949247/us-tries-to-override-new-york-gambling-laws-orders-kalshi-to-keep-operating
- Source link: https://arstechnica.com/tech-policy/2026/08/us-tries-to-override-new-york-gambling-laws-orders-kalshi-to-keep-operating/
> The market emergency alleged by the CFTC is that New York Attorney General Letitia James [3]sued Kalshi on July 31 . James' lawsuit seeks a court order to permanently enjoin Kalshi "from operating an unlawful gambling business" in the state. The lawsuit also demands that Kalshi "make full restitution to customers who have engaged in betting" and pay financial penalties.
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> "New York intends to make event contract derivatives waste away under its iron curtain of state gaming laws before the courts get the chance to issue final rulings," CFTC Chairman Michael Selig said yesterday. "Congress did not intend for derivatives exchanges to be regulated under a patchwork of state gaming laws... New York has no business regulating these interstate financial markets. The commission is required by law to ensure order in these markets, and that is what we have done today." [...]
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> The CFTC says it alone has the power to regulate platforms such as Kalshi and Polymarket under the Commodity Exchange Act, a US law that gives the CFTC exclusive jurisdiction over designated contract markets (DCMs). "These are financial exchanges that offer financial instruments and operate across state lines," Selig said yesterday. "They match the bid from a resident of one state with the offer of a resident from another state and submit the trade to a clearinghouse that backstops the transactions of customers throughout the country."
[1] https://www.cftc.gov/PressRoom/PressReleases/9281-26
[2] https://arstechnica.com/tech-policy/2026/08/us-tries-to-override-new-york-gambling-laws-orders-kalshi-to-keep-operating/
[3] https://yro.slashdot.org/story/26/07/31/1628208/new-york-sues-kalshi-for-running-illegal-gambling-operation
Trump fucks kids (Score:1, Troll)
There's nothing else worthwhile to say on this thread. We all know this is corruption and gambling.
The fed will fail (Score:2)
Kalshi doesn't offer anything from anyone. It lots people gamble on outcomes of events. Nothing involved transfers from the originator to the 'winners' . Not an item, or a stock, or bond, or even currency, etc. this is sports gambling if the players were allowed to place bets on themselves. I hope it gets in front of a court after this idiot's presidential term and we get to work at not only undoing what damage we can, but implementing laws or amendments that make it harder to damage again.
STATE'S RIGHTS! STATE'S RIGHTS! (Score:4, Informative)
OH WAIT! NOT THOSE STATE'S RIGHTS!
I'm so sick of hypocrisy just being embedded into every single god damned fucking thing our government does. To the point when something like this happens, most of us just shrug it off, because they've successfully flooded the zone so much, we're fucking drowning in it. We either have to be continually depressed over what an absolute dogshit pile of failure we are as a country, or we have to learn how to ignore it, the way people in big cities eventually learn you can't say hello to every person you see or you'll be exhausted just walking to work. And the worst part is, the best thing we can hope for at this point is that we swing to the other party at the midterms, so that we can watch them drag-ass and pretend to prosecute some of the worst offenses, and do absolutely nothing to fix any of the actual damage that's been done so that the dipshit brigade voting public that can't stand to pay attention to it except for like a week before the election goes, "Hmm. Seems bad now. Go back other way."
We need real solutions, not more foot dragging nonsense followed by hysterical (as in insane) levels of corruption, followed by more foot dragging, followed by still more hysterical levels of corruption. And it doesn't seem like anyone has any clue how to reach for actual solutions. Even Bernie is a skipping record of talking points that will never, can never be achieved. And people are starting to beat the communist drum every time someone dares say maybe affordability should be a priority again. Pure insanity at every level.
Re: STATE'S RIGHTS! STATE'S RIGHTS! (Score:2)
I fear the real solution is a pile of guns and the other side has most of them.
The grift is now right out in the open (Score:2)
Congress "did not intend" to legalize straight-up gambling nationwide through what amounts to a semantic loophole. There is absolutely no doubt about that, on any side of this discussion (including the CFTC).
It's funny - Online discussions among (real) investors often worry about, and frequently caution each other about insider trading. The reality is, insider trading isn't applicable to the vast majority of us. Unless you're a C-level employee, specifically working in M&A, or maybe as the lead on a t
Re: (Score:2)
Congress doesn't matter. Trump is not allowed to be opposed and he has family members with financial interest you better protect, or you will be buried.
Different priorities (Score:3)
When NY shut down banking access - commonly called extortion - for the Seneca Nation (a Native American tribe in western NY, supposedly a "sovereign entity") over disputed payments from the Seneca's casinos to NY, the Feds didn't do shit. Someone in this administration is making bank from Kalshi.
Michael Selig (Score:2)
"Prior to his appointment to the CFTC, Selig was a corporate lawyer for cryptocurrency firms and prediction markets"
But but but... (Score:2)
Huh. I thought these guys were all about States Rights.
Apparently that only extends to telling women what they can do with their own bodies?
Re: (Score:2)
> Huh. I thought these guys were all about States Rights.
> Apparently that only extends to telling women what they can do with their own bodies?
Well ... [1]Blanche assures anti-abortion supporters that Dobbs will be ‘permanent in every single state’ [politico.com]
> Blanche lamented that the Trump administration’s efforts to restrict abortion are “taking longer than we want” but said the Justice Department was “working hand in hand” with federal health agencies and the White House “so that the Dobbs decision becomes permanent in every single state.”
> “We don’t have complete victory yet, but we will have victory, and victory will be soon, and and and it will be permanent,” Blanche vowed.
[1] https://www.politico.com/news/2026/08/03/blanche-pledged-abortion-pill-crackdown-private-call-01023304
Under this administration (Score:2)
> US ... Orders Kalshi to Keep Operating
Gambling is mandatory. /s
Emergency... (Score:3)
Bribes and kick backs are at threat...
Re: Emergency... (Score:2)
> "New York intends to make event contract derivatives waste away under its iron curtain of state gaming laws before the courts get the chance to issue final rulings"
Yes. Yes! PLEASE DO THIS.