Kalshi has appealed a New York federal court ruling rejecting its bid for a preliminary injunction against state gambling regulators, escalating a dispute over the legal status of sports prediction market contracts.

The company on Tuesday filed its appeal to the US Court of Appeals for the Second Circuit after Judge Analisa Torres found Kalshi had not demonstrated that federal commodities law overrides New York’s gambling regulations.

Judge Torres is a familiar figure in crypto circles. She presided over the landmark SEC v. Ripple case in 2023, delivering a ruling widely viewed as a partial victory for Ripple. The decision is still one of the most influential court verdicts shaping the US digital asset industry.

Kalshi’s appeal comes amid an ongoing legal battle over whether sports prediction markets are federally regulated derivatives or gambling products governed by individual states.

The prediction market giant is challenging similar actions in several states, while regulators have also taken action against other prediction market platforms, including Polymarket, Coinbase, Robinhood and Crypto.com, over allegations that their products amount to illegal sports betting.