Kalshi sued Utah officials in federal court, seeking to prevent a state enforcement action against its event contracts. The company argues that Utah would intrude on the Commodity Futures Trading Commission’s authority; it is seeking preliminary and permanent injunctions and declaratory relief.
The case could affect whether Utah can apply its gambling laws to Kalshi’s federally regulated event-contract exchange.
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A federal judge rejected Kalshi’s attempt to stop Utah from applying its anti-gambling laws to the company’s sports event contracts, according to the report.
ISA-GUIDE reported that a federal judge rejected Kalshi’s request to stop Utah enforcing gambling laws against sports prediction contracts. The judge found federal commodities rules did not override the state restrictions.
Kalshi filed a complaint in the US District Court for the District of Utah on 23 February, seeking to prevent state officials from enforcing gambling laws against its federally regulated event contracts. The company argues that federal commodities law gives the CFTC exclusive jurisdiction and seeks a temporary restraining order, a preliminary injunction and declaratory relief.
Kalshi filed a federal lawsuit against Montana officials, seeking to block the application of the state’s gambling laws to its exchange, according to the report. The company argues that a 2025 agreement paused enforcement during related litigation; Montana’s Gambling Control Division had issued a second cease-and-desist letter ordering Kalshi to stop offering event contracts in the state.
It was reported that Pennsylvania law enforcement is preparing to act when a court stay expires on 13 October. The state Supreme Court found skill machines illegal, but officials are waiting to see whether legislators create a regulatory framework.