The US District Court for Arizona granted the CFTC a preliminary injunction preventing Arizona from applying state gambling laws to prediction-market platforms, according to the report. The source text gives no further details on the ruling or its scope.
Operators should note the injunction prevents Arizona from applying state gambling laws to prediction-market platforms, though its scope is unspecified.
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US District Judge Michael Liburdi temporarily barred Arizona from applying its gaming laws to Kalshi on 10 April. He found that the Commodity Futures Trading Commission had adequately shown that event contracts fall within the Commodity Exchange Act’s definition of swaps; the ruling is temporary, and the case may continue.
A federal judge temporarily barred Arizona from enforcing its gambling laws against prediction-market operators and paused the state’s criminal case against Kalshi. The order cancelled a scheduled arraignment; prosecutors have brought 20 misdemeanor counts, which Kalshi contests. Arizona’s attorney general’s office said it disagreed with the ruling and was considering its next steps.
US District Judge Stephen Locher denied Kalshi’s request for a preliminary injunction against Iowa’s gambling regulation. Locher found that Kalshi was unlikely to establish that federal commodities law pre-empts Iowa’s gambling laws.
Arizona Governor Katie Hobbs signed an executive order barring executive-branch employees from using or disclosing non-public government information to profit, avoid losses or help others profit through prediction markets. Violations could lead to dismissal and referral to law enforcement; Hobbs also urged other state institutions and elected officials to adopt similar policies.
Minnesota Attorney General Keith Ellison filed a memorandum opposing the CFTC’s motion for a preliminary injunction against the state’s prediction market statute, according to the report.