Kalshi asks appeals court to halt Connecticut gambling enforcement during appeal

Kalshi has turned to a federal appeals court to halt Connecticut's enforcement of its sports-event contracts, pending the outcome of its ongoing legal challenge. On August 17, the company filed an emergency request for an injunction with the Second Circuit. Connecticut officials, however, maintain that they have the authority to enforce their gambling laws against Kalshi, despite the Commodity Futures Trading Commission's (CFTC) backing of the prediction-market operator.

Kalshi claims that the CFTC has exclusive authority over its contracts under the Commodity Exchange Act, a stance that Connecticut officials dispute. The legal dispute began when Kalshi expanded into sports contracts in January 2025, which generated 80% to 90% of its revenue by February 2026. Connecticut issued a cease-and-desist letter in December 2025, stating that only licensed entities may offer sports wagering in the state, and that Kalshi's contracts violated various state laws and policies.