By SectorWire desk ·
Utah District Court Judge Robert Shelby ruled that the state could apply gambling laws to Kalshi. He rejected its federal-preemption argument, and the operator plans to appeal.
The ruling permits Utah gambling-law enforcement while Kalshi prepares an appeal.
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Utah retains authority to apply its gambling laws to Kalshi.
The ruling permits Utah to enforce its gambling laws against Kalshi.
The dispute concerns whether states can apply gambling rules to sports-event contracts offered by federally regulated exchanges.
The findings bear on state challenges to Kalshi and Polymarket's position that their contracts fall exclusively under CFTC jurisdiction.
The analysis questions Kalshi’s explanation for concentrated activity in its ether perpetual contracts.
The new contracts allow partial settlement rather than requiring players to reach the full statistical target.