In a significant development for prediction markets, the Commodity Futures Trading Commission (CFTC) issued an emergency ruling this week that instructs Kalshi to resume offering event contracts in New York. This decision comes despite the state’s ongoing $36 billion lawsuit against the company.
One of the most noteworthy incidents this week involved FlightAware, a flight data company, which temporarily stirred controversy with Kalshi. On Monday, FlightAware filed a lawsuit in New York federal court alleging breach of contract and trademark infringement related to Kalshi’s use of its data for flight-cancellation markets. The company claimed Kalshi continued to utilize its trademark and data even after receiving cease-and-desist letters.
The situation took a twist when FlightAware voluntarily dismissed its lawsuit just a day later, apparently resolving its disputes out of court. Attorney Ariel Givner suggested that the quick withdrawal indicated a possible agreement between the two parties.
While one legal challenge against Kalshi resolved, others are piling up. Novig, a newly burgeoning prediction markets operator, initiated lawsuits against the states of Massachusetts, New Mexico, New York, and Washington within a week of launching its platform. The firm is seeking preliminary injunctions against legal actions taken by these states regarding prediction markets. Novig received CFTC approval on June 16 to operate as a designated contract market and officially launched its services on August 4.
In other regulatory news, Nevada plans to sever ties with the National Council on Problem Gambling (NCPG), following in the footsteps of Michigan’s Gaming Control Board, which withdrew its membership due to NCPG’s collaboration with Kalshi. The Nevada Council Executive Director, Trey Delap, stated that ongoing discussions with NCPG leadership clarified a deeper disconnect about how problem gambling organizations should respond to emerging risks within the gambling industry.
On the regulatory front, the CFTC announced that its upcoming Innovation Advisory Committee meeting on August 20 will likely discuss prediction markets among other topics. The committee, established in February, includes notable figures from leading prediction market and gambling platforms, including CEOs from CME Group, Coinbase, DraftKings, and Kalshi.
In California, the U.S. District Court for the Northern District approved the dismissal of the Picayune Rancheria of the Chukchansi Indians from a federal lawsuit against Kalshi. The tribe, along with other California tribes, claimed illegal gaming operations on tribal land, but a judge denied their request for a preliminary injunction last November, resulting in the case being taken up by the Ninth Circuit Court of Appeals.
In a trend of transition from sweepstakes to prediction markets, Fliff is now seeking to register with the National Futures Association as a futures commission merchant. This shift allows Fliff to accept event contract trades as market developments evolve in the gambling space.
Meanwhile, DraftKings CEO Jason Robins reported strong growth for DraftKings Predictions during the company’s recent earnings call, noting that over 600,000 customers engaged with the product in the first half of 2026. Recently, DraftKings filed for self-certification of new sports event contracts, including an expansion of its popular Combos markets in anticipation of the upcoming NFL season, with plans to increase the volume of sports content on its DKeX prediction markets exchange.
