In a major legal escalation, prediction market platform Kalshi has filed a federal lawsuit against the New York State Gaming Commission, aiming to secure its national reach and challenge the authority of state gambling laws over federally approved sports event contracts. This move marks a significant development in the ongoing legal battle that has seen numerous cease-and-desist orders from other states, including Arizona, Illinois, Montana, Ohio, and more, as Kalshi pushes for nationwide expansion of its platform. 20 specific contracts deemed unlawful by New York state regulators have been targeted by the cease-and-desist order, demanding Kalshi halt operations in the Empire State until resolution is reached. Kalshi argues that federal law preempts state regulation, while New York maintains that sports event contracts fall under their jurisdiction.