Federal Judge Temporarily Blocks Connecticut’s Gambling Order Against Kalshi
A federal judge has granted prediction markets platform Kalshi a temporary reprieve from Connecticut's enforcement actions, which accused the company of operating unlicensed online gambling. The ruling halts state intervention while the legal battle over Kalshi's regulatory classification plays out in court.
Kalshi contends its event contracts are derivatives under the CFTC's exclusive jurisdiction, not state gambling laws. This dispute mirrors broader challenges the company faces as it expands nationwide, with multiple states questioning its operational model.
Connecticut's Department of Consumer Protection had issued cease-and-desist notices to Kalshi, Robinhood, and Crypto.com, alleging unauthorized sports wagering through online contracts. Kalshi's swift lawsuit forced a judicial pause, with proceedings now extending into early 2026.
