By SectorWire desk ·
The 10th US Circuit Court of Appeals denied Kalshi’s emergency request to halt Utah gambling enforcement during its appeal. Utah can continue enforcing its gambling laws against the platform while the appeal proceeds.
The ruling leaves Kalshi exposed to Utah gambling enforcement while its appeal continues.
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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.