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 United States · Question 10 of 11

# Enforcement: How hard does the regulator enforce?

Mixed · Confirmed · AI-generated · [Back to full United States report →](https://advennt.io/jurisdictions/united-states/)

Key section parameters

| Jurisdiction | United States (US) |
|---|---|
| Regulator | Recorded in register |
| Favourability | Mixed |
| Confidence | Confirmed |
| Review status | AI-generated |
| Last collected | 18 Oct 2026 |

Summary answer

The CFTC invoked emergency authority on August 11, 2026, to order Kalshi to continue operating in New York despite a state Attorney General lawsuit alleging the platform operated unlicensed sports gambling under state law. This overrides a state enforcement action with a federal directive and is the…

## Full section analysis

The CFTC invoked emergency authority on August 11, 2026, to order Kalshi to continue operating in New York despite a state Attorney General lawsuit alleging the platform operated unlicensed sports gambling under state law. This overrides a state enforcement action with a federal directive and is the clearest evidence yet that the classification dispute over prediction markets is determining enforcement outcomes on the ground. It sits alongside the CFTC's broader litigation against nine states (Arizona, Connecticut, Illinois, New York, New Mexico, Minnesota, Rhode Island, Wisconsin, Kentucky) seeking to establish exclusive federal jurisdiction under the Commodity Exchange Act over sports-linked event contracts, a dispute federal appeals courts have not resolved consistently. One licence-revocation risk driver for operators in this space is precisely this jurisdictional uncertainty: a platform operating under a CFTC theory of federal preemption may still face a state enforcement action on an unlicensed-gambling theory, and the outcome currently depends on which circuit's precedent a court applies.