New York and Kalshi's legal battles have captivated the headlines in recent months. New York is seeking to stop Kalshi from offering sports prediction markets and potentially ban Kalshi from operating in the state in any capacity, while Kalshi is fighting back to remain in New York. This is an ongoing legal battle being contested in the courts. Learn more about the latest of this ongoing legal battle below. Use Kalshi promo code CBSSPORTS55 now by tapping here for a welcome offer of trade $25 and get $55 in bonus trading credits.
Kalshi's Legal Status in New York
Last updated October 12
The question of "Are prediction markets legal?" is presently an issue of federal regulation; however, some states have challenged prediction markets, with a few states successfully getting sports markets taken down.
Is Kalshi legal in New York? Kalshi is federally regulated by the Commodity Futures Trading Commission (CFTC). Kalshi, as a prediction market, isn't regulated by states.
New York is arguing that Kalshi, which trades event contracts, should be mandated to operate within New York State gambling laws. That would require Kalshi to operate under a New York license. This would force Kalshi to comply with New York gambling laws and the New York State Gaming Commission, including stating how Kalshi would be taxed.
Kalshi New York legal updates
July
On July 31, New York sued Kalshi, alleging Kalshi is running an illegal gambling operation in New York through its prediction market platform. Earlier in July, a federal judge in New York rejected Kalshi's request to block New York from enforcing its gambling laws. Kalshi is arguing federal law allows it to operate in its current form in New York.
In 2021, the New York State Gaming Commission approved nine operator licenses for sportsbooks, which pay a 51% tax rate. All nine licenses are in use. The New York State Gaming Commission also controls which bets sportsbooks can offer.
August
On August 11, the CFTC released a statement exercising its emergency authority to ensure Kalshi remains operating in New York. Kalshi must operate "in accordance with the Commodity Exchange Act's Core Principles," according to the release.
The release added that the Commodity Exchange Act requires a "uniform national market in derivatives transactions", meaning if Kalshi is operating one way in one state, it must also operate the same way in the others.
"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," said Chairman Michael S. Selig. "Congress did not intend for derivatives exchanges to be regulated under a patchwork of state gaming laws. These are financial exchanges that offer financial instruments and operate across state lines."
September
On September 25, the United States Court of Appeals for the Sixth Circuit ruled against Kalshi and sided with the states, saying state gambling laws can regulate Kalshi's sports event contracts. This creates a potential for a U.S. Supreme Court review.
October
On October 8, the NFL asked the Supreme Court to review this, asking SCOTUS to let states regulate prediction markets.
For New York specifically, Kalshi has a pending appeal to the Second Circuit against a judge's ruling that the Commodity Exchange Act does not preempt New York's gambling law. Kalshi gave its opening brief and joint appendix on August 31. The New York State Gaming Commission's brief is due on October 30.
There are many elements in play during this Kalshi New York legal battle. It pits a federal agency (CFTC) vs. state (New York) and raises the question of whether trading event contracts should be governed the same as traditional sports betting.
Kalshi New York Sign-Up Offer for Traders
The Kalshi promo code CBSSPORTS55 gives new users in New York $55 in bonus trading credits after their first $25 in trades.
Kalshi Welcome Bonus | |
Kalshi Promo Code | |
Minimum Deposit | $10 |
Available States* | Available nationwide for new users to sign up |
Promo Eligibility | New users physically located in a state where Kalshi prediction markets operate who complete the sign-up and identity verification process |
Legal Age | 18+ |
Trade Requirement | Trade $25 on event contracts within 30 days of completing the sign-up process |
Key Terms | $55 in bonus credits must be traded through before profits can be withdrawn and expire 7 days after issuance |
Last Verified | October 12, 2026 |
*Sports event contracts currently unavailable in MI, NV and WA
New customers must be 18+ and have a legal, U.S. residential address within a state where Kalshi operates.
To activate after using promo code CBSSPORTS55 during account registration, trade at least $25 on prediction markets within seven days of opening a new account and get $55 in bonus trading credits. The $55 bonus trading credits must be used for trades on Kalshi event contracts.
Bonus trading credits cannot be withdrawn or transferred. Only profits from trades on Kalshi prediction markets can be withdrawn. Profits from trading the $55 in bonus trading credits may be withdrawn by a participant only after trading an amount equal to the bonus after receiving the bonus trading credits.
Bonus trading credits expire after seven days of being issued.
Which Kalshi Markets Are Available to New York Traders?
New York residents currently have full access to Kalshi's offering, including sports contracts. New York residents can trade on sports contracts such as game outcomes, player outcomes and futures. That includes various other NFL prediction market offerings. New York residents can also trade on award winners.
Non-sports trades include politics, culture, climate, finance and more.
To begin your trading experience on Kalshi and earn a $55 trading bonus after trading $25 of event contracts by using the newest Kalshi promo code CBSSPORTS55 below:
Setting Up a Kalshi NY Account
1. Tap the CLAIM BONUS button above and download the Kalshi app to get started opening a Kalshi NY account.
2. New York users aged 18+ can register for a Kalshi account and enter the information requested, including name, address, phone number and Social Security number. Be sure to use the Kalshi referral code CBSSPORTS55 to lock in the bonus offer.
3. Once registered, tap the green "Deposit Cash" button, choose your preferred deposit method and follow the prompts.
4. New users must trade at least $25 in contracts.
5. Eligible users receive $55 in bonus trading credits. Bonus trading credit expires seven days after the initial receipt.
For the full terms and conditions and how to claim the promo, go to kalshi.com. This offer provides more bonus trading credits than the $25 Polymarket promo code currently available in NY.
Featured Kalshi New York Sports Market: Pro Football Champion
Here are the latest prices for the top-five teams in this massive futures market. Successful trades pay out at $1 per event contract, while unsuccessful trades result in a 100% loss. You can also visit our Kalshi Super Bowl page for more info.
Responsible Trading
Kalshi provides numerous tools to help users with responsible trading, including trading breaks, voluntary self-exclusion and personalized funding caps. Kalshi Responsible Trading resources can be found here: https://kalshi.com/policy-center/responsible-trading.
Prediction markets should be used for entertainment purposes, in a fun, responsible manner. Trading involves substantial risk of loss and is not suitable for everyone. Past performance is not indicative of future results. Participation in prediction markets is subject to applicable eligibility requirements. Availability may be restricted or prohibited in certain jurisdictions and participants are responsible for ensuring their participation complies with applicable laws and regulations in their jurisdiction. Prediction market content is not intended for individuals located in jurisdictions where they are prohibited. See the NCPG's Financial Trader Health and Safety Initiative for more information.
Concerned about your trading behavior? Call or text 1-800-MY-RESET.
FAQ
Can New York residents actually sign up for Kalshi right now?
Yes, despite uncertainty about Kalshi's future in the state, New Yorkers can sign up and trade on Kalshi now. The Kalshi promo code CBSSPORTS55 unlocks a trade $25, get $55 bonus trading credits offer
How is Kalshi different from New York's licensed sportsbooks?
Kalshi is federally regulated by the CFTC. New York sportsbooks are granted a state-issued license through the New York Gaming Commission. Because Kalshi doesn't operate under the New York Gaming Commission, it can offer markets without a NY state gaming license.
What happens to my account or funds if New York's enforcement effort succeeds?
Kalshi, by federal rule and oversight by the CFTC, must keep customer funds in segregated customer accounts, meaning they are separated from the company's capital. If New York wins and Kalshi can't operate in the Empire State, a user's cash balance should remain secure for withdrawal.
Why can Kalshi operate in New York if it isn't state-licensed?
Kalshi is federally regulated by the CFTC, which Kalshi argues supersedes a requirement to obtain any state-specific licenses. The CFTC asserts exclusive jurisdiction over prediction markets and event contracts. New York disagrees and views Kalshi as another form of sports betting and argues it should need to operate under the same laws as sportsbooks in the state. That is for the courts to decide.
