Kalshi secures temporary relief on Connecticut enforcement as legal fight escalates
Kalshi won a temporary pause on Connecticut enforcement actions while a judge reviews its challenge to state gambling regulations.Summary
Prediction markets platform Kalshi has obtained a temporary hold on enforcement actions from Connecticut's Department of Consumer Protection (DCP), which had issued cease-and-desist notices alleging Kalshi offered unlicensed sports-related wagering.
In response, Kalshi filed a lawsuit arguing that its event-based contracts are regulated derivatives overseen by the Commodity Futures Trading Commission (CFTC), which granted it designated contract market status in 2020, thus preempting Connecticut's gambling laws.
U.S. District Judge Vernon Oliver issued the order for interim protection, directing DCP to pause enforcement while the court reviews Kalshi's request for preliminary relief. The schedule sets a response from Connecticut by January 9, 2026, with oral arguments anticipated in mid-February. Kalshi has faced similar regulatory challenges in other states this year.
(Source：The Block)