Overview
- U.S. District Judge Robert J. Shelby granted summary judgment to Utah on Tuesday, finding the Commodity Exchange Act does not preempt the state from applying its anti‑gambling laws to Kalshi’s sports and proposition contracts.
- Shelby rejected Kalshi’s bid for a preliminary injunction, closing the federal case in Utah and leaving state enforcement options available while the company pursues an appeal.
- Kalshi said it will appeal to the U.S. Court of Appeals for the Tenth Circuit, a move that will add to an emerging circuit split where other federal courts have reached conflicting rulings.
- Utah officials, including Attorney General Derek Brown and Governor Spencer Cox, said they will consider enforcement measures such as account blocks, technology restrictions, penalties or criminal referrals against Kalshi if legal avenues allow it.
- The dispute pits federal commodities oversight by the CFTC against traditional state control of gambling, and the outcome could affect licensing, taxation, consumer protections and whether a patchwork of state rules or a single federal regime governs prediction markets.