alt Hacker NewsNot literally. I think the text in question is: "within or from New York or to persons in New York." Where CFTC is arguing that "from" would have interstate consequences. I'm not a legal expert, though, so I have no idea if something similar has been fought in court before.
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Interesting, I found KalshiEX LLC v. Flaherty [1] which seems strikingly similar to this case and was ruled in favor of Kalshi.
"The Third Circuit affirmed the District Court’s order. The appellate court held that the Commodity Exchange Act (CEA) grants the Commodity Futures Trading Commission (CFTC) exclusive jurisdiction over swaps, including sports-related event contracts traded on CFTC-licensed DCMs."
[1]: https://law.justia.com/cases/federal/appellate-courts/ca3/25...
These are the CFTC licensed contract markets, which are not the same exact thing.
I'm not sure how to explain all this without writing a 70 page dissertation on HN, and it's probably not worth it :)
Overall - this is a wildly complicated area. To give you an idea how complicated: Ignoring state law, transmitting gambling information for sports events over the wire is a federal crime. See 18 U.S.C. § 1084(a), which makes it a crime for a person “engaged in the business of betting or wagering” knowingly to use an interstate or foreign wire facility to transmit bets/wagers or information assisting bets/wagers “on any sporting event or contest.”
(It's legal if you are transmitting from a jurisdiction where it's legal to a jurisdiction where it's legal).
This has been upheld repeatedly for sporting events.
New york can, and did, include a claim to enjoing them from violating this act, which has absolutely no pre-emption issue because it's not a state law.
The case you cited is going to end up in the supreme court, where it will be a toss up. (in previous supreme courts, it would be a non-starter and the third circuit would have been summarily reversed)