Kalshi has filed a federal lawsuit against New York State after receiving a cease-and-desist letter from the New York State Gaming Commission. The company aims to obtain a preliminary injunction to stop the enforcement of state gambling laws against its operations. The core of the legal dispute revolves around whether Kalshi's event contracts, which pertain to sports outcomes, qualify as "excluded commodities" under the Commodity Exchange Act (CEA). The implications of this classification are significant, as it determines whether the CFTC has exclusive jurisdiction over these contracts. A key point in the argument is the definition of "excluded commodity." This term refers to occurrences or contingencies that are beyond the control of the parties involved and have financial, economic, or commercial consequences. Kalshi previously argued that the outcomes of sporting events do not carry these implications, claiming such contracts are unlikely to serve any commercial interests. However, Kalshi has changed its position, now asserting that the outcomes of sporting events can have substantial financial implications, citing a specific example of Rory McIlroy's win at the 2025 Masters, which reportedly boosted CBS's television viewership by 33%. The article highlights a critical distinction: while broadcast rights tied to major sporting events may have financial consequences, it doesn't automatically mean that the event outcomes themselves do. The incoming CFTC Chairman has pointed out that almost any event could be deemed a commodity if this broad interpretation were applied. The more specific inquiry is whether the outcome of a sporting event, like McIlroy winning, is directly associated with financial consequences beyond the competitors involved. The article concludes by contrasting Kalshi's stance with the CFTC's examples of event contracts, which include macroeconomic indicators and corporate earnings, emphasizing the necessity of a narrow definition to avoid absurd outcomes in regulatory interpretations.