Kalshi’s emergency motion for injunction in Utah was denied by the 10th Circuit US Court of Appeals, opening the door for state regulators to begin enforcing anti-gambling laws against the prediction market.
The 10th Circuit US Court of Appeals stated Kalshi “has not shown the factors” required to be granted an emergency injunction, as the operator originally filed the motion on August 17 to seek federal intervention.
A federal judge had previously ruled that the state maintained authority to enforce its gambling laws against prediction market operators on August 6.
Kalshi filed a lawsuit in the US District Court of Utah during February following what the operator described as an “intrusion” into the federal government’s authority to oversee prediction market platforms regulated by the Commodity Futures Trading Commission (CFTC).
Utah Governor Spencer Cox publicly criticized CFTC Chairman Michael Selig over the legality of sports-related prediction markets on February 17, leading to the eventual court battle between state regulators and Kalshi.
Currently, intentionally providing or offering any form of online gambling is classified as a third-degree felony in Utah, punishable by up to five years in prison. Both the platform and individuals overseeing the operator can be charged under state law.
Kalshi also suffered a legal setback in Michigan after Attorney General Dana Nessel was granted a second preliminary injunction forbidding the operator from providing sports-related event contracts across the state on September 2.
As a result of the additional enforcement action, Kalshi will be forced to implement geofencing measures to block Michigan residents and those within the state’s borders from accessing the platform.
In an additional blow to Kalshi’s sports-related contract markets, the CFTC requested the operator remove all trades tied to player injuries, as well as the duration respective athletes would be unable to play for.
Kalshi formed a new partnership with The Weather Company on August 26 to verify outcomes on related markets and integrate real-time data within The Weather Channel application and website
