The Wisconsin federal court has officially denied Kalshi's request for an expedited discovery in its ongoing case with the Ho-Chunk Nation Tribe, which filed a lawsuit against the operator in November for what it believes are illegal betting operations.
According to the ruling, Kalshi failed to show "good cause" for an expedited discovery, as the federal court believes its preliminary injunction filed against the Ho-Chunk Tribe can be decided on "purely legal grounds."
"Based on the record, the court cannot find good cause here. First, both sides agree that the pending motion for preliminary injunction may be decided on purely legal grounds, undermining the position that discovery is required," the ruling said.
"Second, defendants do not identify with any specificity the discovery they claim they need. They generally propose propounding written discovery, serving subpoenas, and taking depositions, but do not explain what specific information they would seek through this discovery, how the information would factor into the injunction analysis, or whether defendants could not develop the same or similar information through other means."
The federal court therefore ruled it to be "unclear" whether Kalshi actually needed the discovery at all, and believes the marketplace's issue regarding Tribal competition "is an issue for which the defendants control their own information."
Kalshi had also requested additional time to brief its preliminary injunction notice, as the required materials for its case against the Ho-Chunk Tribe are now due on January 20, 2026. The Tribe's response will then be required by January 30, but the extension was mainly issued due to the "counsel's workload" rather than approving Kalshi's request.
On December 17, Kalshi also witnessed negative results from its ongoing trial in Nevada after Judge Andrew Gordon denied the operator's stay which would've prevented regulators from issuing a cease-and-desist order.
Judge Gordon also dissolved Kalshi's preliminary injunction in November, which allowed the operator to conduct business in Nevada as the trial was ongoing.
On December 23, Kalshi Co-Founder Luana Lopes Lara confirmed Brazil is firmly on the operator's radar as it plans its next phase of international expansion
