Better Markets Backs New York in Kalshi Appeal
The nonprofit urged the 2nd U.S. Circuit Court of Appeals to reject Kalshi's appeal on the merits as the state seeks to block its sports contracts.
Updated on Nov. 10, 2026 in Gambling
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Better Markets, a nonprofit founded after the 2008 financial crisis, filed a friend-of-the-court brief on Nov. 9 supporting New York in KalshiEX v. Williams before the 2nd U.S. Circuit Court of Appeals. The brief urges the court to reject Kalshi's appeal on the merits while the 2nd Circuit has preliminarily ruled that Kalshi may not operate its sports contracts in New York during the appeal.
Why it matters
Kalshi lets users trade contracts tied to the outcomes of events, including sporting events, and has argued its federally regulated markets are not subject to state gambling laws. Recent rulings by the 9th and 6th U.S. circuit courts told Kalshi to follow state gambling laws, and states including New York have moved to bring the contracts under their gambling rules.
None of the 29 judges on the 9th Circuit voted in favor of Kalshi's request for reconsideration, while the 2nd Circuit's preliminary ruling bars its New York sports contracts during the appeal. The appeal remains pending and the court has not yet ruled on the merits.
The players
Better Markets
A nonprofit founded after the 2008 financial crisis that advocates for financial regulation and reform.
Kalshi
A federally regulated prediction market platform that lets users trade contracts tied to event outcomes, including sporting events.
The details
Better Markets filed the brief in the Kalshi case before the 2nd Circuit, urging it to reject the company's appeal. Kalshi has argued its federally regulated markets are not subject to state gambling laws, but recent rulings by the 9th and 6th circuits directed it to follow state gambling rules.
Timeline
Nov. 9, 2026: Better Markets files its friend-of-the-court brief supporting New York in the Kalshi case.
Industry Dynamics
Recent rulings by the 9th and 6th U.S. circuit courts directed Kalshi to follow state gambling laws, and the 2nd Circuit's pending appeal extends that line of decisions. New York's effort reflects a broader push by states to bring event-outcome contracts under their existing gambling rules.
Kalshi's sports contracts are currently barred from operating in New York while the appeal is pending, which affects where New York users can trade them. The outcome will determine whether residents can continue accessing these event contracts through the platform.
The takeaway
The outcome of the 2nd Circuit appeal could determine whether state gambling rules apply to event-outcome contracts like Kalshi's sports markets. Readers in New York should track the appeal to understand what access may change.
Further reading
For more on how states regulate betting and prediction markets, see Gambling coverage on Wisevoter.
Source note: This article includes information reported by NJTODAY.
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