By SectorWire desk ·
A Connecticut judge rejected Kalshi’s request for an emergency injunction during its appeal. The judge rejected Kalshi’s reliance on a CFTC emergency order in New York, finding that the agency could not override the court’s decision.
Kalshi remains without its requested emergency injunction during appeal after the judge rejected reliance on the CFTC order.
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The dispute concerns whether states can apply gambling rules to sports-event contracts offered by federally regulated exchanges.
The dispute could affect whether prediction market operators face state gambling laws alongside federal oversight.
The outcome could determine whether prediction market operators can continue serving the US market under federal or state rules.
Kalshi’s proposed rule would allow financial penalties, suspension or account deactivation for users harassing athletes or third parties over trading.
Nevada has no fallback plan if the Supreme Court sides with prediction market operators, leaving its stance uncertain.
The suit contests state authority over Underdog’s prediction market and follows a ruling against Kalshi.