The matter of the dispute between states’ legal rights and federal preemption (with Kalshi and other prediction market firms firmly on the latter side) has grown increasingly complicated due to conflicting rulings from various courts. Three federal appellate courts have issued two decisions that sided with the states and one that went Kalshi’s way. In Utah, a U.S. district court judge sided with the state in a case that’s also under appeal.
“Anyone offering gambling to Utahns is on notice that it is illegal in Utah and that no Utah law authorizes it,” Attorney General Derek Brown said in a statement last week, accusing Kalshi of running an online casino.
The CFTC is currently battling 10 states in court and has been filing legal arguments across the full spectrum of the judicial system — all while having been cut in legal staffing as the administration of President Donald Trump has sought to reduce U.S. regulatory forces.
While…
