Kalshi faces another setback in Connecticut as judge rejects CFTC argument
A federal judge has ruled that the CFTC cannot override the court’s interpretation of federal law.
US.- District Judge Vernon D. Oliver has rejected Kalshi’s latest attempt to challenge Connecticut’s gaming laws, ruling that the Commodity Futures Trading Commission (CFTC) cannot dictate an outcome that conflicts with the court’s interpretation of federal law. The prediction market operator had appealed for an emergency injunction after Oliver denied Kalshi’s request for a preliminary injunction on August 10.
Kalshi claimed that federal law required it to continue operating even if state authorities ordered it to stop. The company argued that enforcing Connecticut’s requirements could expose the company to civil and criminal liability and cause reputational damage.
Oliver disagreed, finding that the CFTC order did not materially change his previous analysis or indicate that the agency intended to take regulatory action against Kalshi. He also rejected Kalshi’s argument that complying with state gaming laws would cause irreparable harm, finding the potential consequences speculative and insufficient to justify an injunction.
Kalshi is facing similar legal disputes in several other states. In Nevada, the Gaming Control Board has sought US$ 120,000 in daily fines against Kalshi after investigators found they could still access prohibited sports, election and entertainment contracts from within the state despite a court-ordered geofencing deadline.
