By SectorWire desk ·
The report said, citing published reporting, that a Connecticut federal judge denied Kalshi’s request to stop state action against sports event contracts. The judge found the contracts were not swaps pre-empted by federal law.
Connecticut can continue applying its gambling laws to Kalshi’s sports contracts.
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The dispute concerns whether states can apply gambling rules to sports-event contracts offered by federally regulated exchanges.
The findings bear on state challenges to Kalshi and Polymarket's position that their contracts fall exclusively under CFTC jurisdiction.
The analysis questions Kalshi’s explanation for concentrated activity in its ether perpetual contracts.
The new contracts allow partial settlement rather than requiring players to reach the full statistical target.
The dispute could affect whether prediction market operators face state gambling laws alongside federal oversight.
The denial challenges Kalshi’s account of a tribal partnership.