By SectorWire desk ·
The report said that judge Robert J. Shelby ruled for Utah on 4 August 2026 in KalshiEX v Cox. State gambling laws apply to the platform’s sports contracts, and the court rejected Kalshi’s injunction request and closed the case.
The judgment leaves Kalshi’s sports contracts subject to Utah gambling restrictions.
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The judgment subjects Kalshi’s sports contracts to Utah’s gambling prohibition.
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.
The dispute could affect whether prediction market operators face state gambling laws alongside federal oversight.