Prediction market Kalshi has filed a lawsuit against the New York State Gaming Commission in the US District Court for the Southern District of New York, asking the court for a “permanent injunction and declaratory relief.”

It comes as it filed a brief response opposing Nevada regulators’ request for an emergency review of their effort to lift a preliminary injunction.

Kalshi argues that the New York State Gaming Commission “seeks to prevent Plaintiff KalshiEX LLC (‘Kalshi’) from offering event contracts for trading on its federally regulated exchange” and “does so by threatening Kalshi with imminent civil penalties and fines for offering these contracts.”

The dispute stems from a cease-and-desist letter the Gaming Commission sent to Kalshi on Friday (October 24), claiming that offering event contracts based on sporting events taking place in New York State without a sports gaming license would violate state law.

The letter directed Kalshi to “cease and desist immediately from illegally advertising, promoting, administering, managing, or otherwise making available sports wagering and/or a mobile sports wagering platform in New York.”