The U.S. Court of Appeals for the Tenth Circuit denied the emergency motion filed by the Kalshi platform, allowing the state of Utah to begin enforcing its strict anti-gambling regulations. The court’s ruling refuses to grant the preliminary injunction sought by the operator, immediately enabling intervention by state authorities while the underlying appeal regarding the legality of its contracts continues.
BREAKING: Tenth Circuit denies Kalshi’s emergency motion for injunction pending appeal, which aimed to prevent Utah state officials from taking civil or criminal action against Kalshi during the appeal process. Utah can now enforce its strict anti-gambling laws against Kalshi. pic.twitter.com/8OG0oxjK17
— Daniel Wallach (@WALLACHLEGAL) September 8, 2026
This decision sets a complex precedent for the prediction markets and digital derivatives ecosystem in North America. Kalshi maintained that its instruments operate under the exclusive federal oversight of the Commodity Futures Trading Commission (CFTC). However, the ruling in Utah’s favor opens the door for other states to impose independent local restrictions, fragmenting the operational framework for these platforms.
Following this ruling, the operator will have to face the main litigation without injunctive relief in Utah territory. The final outcome of the dispute will determine the regulatory boundaries between state gambling laws and financial prediction markets.
Source: https://x.com/WALLACHLEGAL/status/2097375632724209759
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