A federal court in Utah granted the state’s request for summary judgment in its case against Kalshi, according to a report. The judge ruled that Kalshi’s federal registration as a prediction market does not prevent Utah from applying its gambling laws to the platform’s sports event contracts.
Kalshi’s federal registration does not prevent Utah from applying gambling laws to its sports event contracts.
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Kalshi has asked a federal court in Iowa to bar state officials from enforcing gambling laws against its sports event contracts. The company argues the Commodity Exchange Act gives the CFTC exclusive jurisdiction over contracts traded on federally regulated exchanges, leaving states no room to intervene.
New Jersey has petitioned the US Supreme Court over whether sports prediction contracts are exempt from state gambling laws. The state challenges an appellate ruling that prevented its gaming authorities from blocking Kalshi’s sports contracts. The Supreme Court has yet to decide whether to hear the case.
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.
iGamingToday reported that New York Attorney General Letitia James sued Kalshi in Manhattan state court. The complaint alleged the company offered event contracts without the gambling licence required by state law.
The Ninth US Circuit Court of Appeals ruled on 28 August that Nevada can regulate Kalshi’s sports event contracts under state gambling laws. The unanimous decision rejected Kalshi’s argument that federal commodities law prevents state regulation and upheld the lifting of an injunction that had allowed the company to continue offering the contracts. Kalshi said it plans to seek further judicial review.