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Kalshi asks Arizona federal court to block state enforcement over prediction markets

Regulation

Kalshi filed a complaint in federal court in Arizona on 12 March, seeking a temporary restraining order and preliminary injunction against potential state enforcement, the company said. Arizona gaming officials had warned that its offerings could constitute unlicensed wagering and issued a cease-and-desist notice last year. Kalshi argues federal derivatives law takes precedence over state gambling rules.

The court’s decision could clarify whether Arizona may enforce gambling rules against Kalshi’s event contracts.

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Regulation

CFTC asks New Mexico court to block state gambling laws for Kalshi contracts

The Commodity Futures Trading Commission filed in a New Mexico court, arguing that federal commodities law gives it exclusive jurisdiction over Kalshi’s event contracts. The CFTC asked the court to find state gambling laws unenforceable as applied to transactions on CFTC-regulated markets; New Mexico officials allege that Kalshi offers illegal sports betting and should hold state gaming licences.

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