A New York judge has ruled that the state’s request for a preliminary injunction against prediction‑market operator Kal shi is moot after the company moved the case to federal court.
Justice Melissa Crane denied the motion without prejudice, allowing the state to refile if a federal judge remands the matter back to state court.
The ruling followed Kal shi’s removal of the state proceeding on July 31, while New York had been seeking emergency relief.
The core dispute concerns whether Kal shi’s event contracts amount to gambling under New York law, with the state alleging the company operates without a required gaming license and seeking to block its services and recover alleged profits and penalties.
State officials argue that Kal shi’s platform violates gaming regulations designed to protect consumers, curb gambling addiction, and support public services, and that the company is operating illegally.
Kal shi launched in 2021 and expanded into sports markets in 2025, claiming a $22 billion valuation and $178 billion in annualized transaction volume.
The Attorney General’s office has cited ongoing consumer exposure and unregulated activity, noting that the platform remains accessible from New York.
Governor Hochul has also highlighted concerns over potential corruption involving public employees and insider betting.
The federal court will determine whether the dispute returns to state court or continues under federal jurisdiction, leaving the injunction request unresolved for now.
No further details on the outcome are available at this time.
