alt Hacker NewsIt seems that New York is asking the court for a temporary restraining order that would prohibit Kalshi from offering all event contracts nationwide. I also have zero love for Kalshi, but I can see why such a request would be concerning, regardless of whether I think Kalshi is a degenerate trash heap.
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When Texas shut down porn sites internationally, this didn't happen, the order from Texas was allowed to stand. This is because Texas is a red state and NY is blue.
It sounds like it's more, New York wants to halt Kalshi's New york operation, however Kalshi is headquartered in New York, so this would stop all of Kalshi's operations.]
If New York has this jurisdiction(management of for profit incorporation's in New York) Kalshi would have to reorganize somewhere else to continue operations.
Yea; interstate commerce being the domain of the federal government is one of the more tested legal concepts we have here.
That's not true at all. New York is asking the court to stop the Kalshi executives, who are located in New York, from flagrantly violating the sports gambling laws of New York. Kalshi would be free to move to another state where sports gambling is legal if they wanted to keep the platform up.
In saying, "New York seeks a temporary restraining order prohibiting KalshiEX, LLC from offering all event contracts nationwide" the CFTC's press release substantially misrepresents the filing by the NY AG. On page 29, the filing requests "Permanently enjoining Respondent and its principals, agents, and employees from operating an unlawful gambling business, or otherwise advancing gambling activity, or profiting from gambling activity, within or from New York or to persons in New York, without being licensed by the New York State Gaming Commission" (https://ag.ny.gov/sites/default/files/court-filings/new-york...).
Since Kalshi's HQ is in NY, I guess the most charitable interpretation is that perhaps the CFTC's statement is based on the assumption granting the TRO would have the net effect of disrupting Kalshi's operations everywhere until they can serve the site from outside NY. Of course, without disclosing that extrapolation, the statement is still factually incorrect.
Setting aside that significant error, I suspect this CFTC order is an attempt to create a federal vs state conflict in the hope the judge will suspend or defer any TRO until that issue is decided. I imagine Kalshi will file a response tomorrow arguing exactly that. Ultimately, this will still come down to whether Kalshi can be regulated by states, and if so, whether it's gambling.