Arizona Judge Blocks Gambling Enforcement Against Kalshi Contracts
An Arizona judge temporarily blocked state enforcement of gambling laws against Kalshi, supporting the CFTC's stance on event-based trading.Summary
A federal judge in Arizona has temporarily prevented state officials from enforcing gambling laws against Kalshi, aligning with the Commodity Futures Trading Commission (CFTC). The dispute revolves around the classification of Kalshi’s “event contracts”—whether they are federal derivatives or state gambling. Judge Michael Liburdi ruled that the CFTC is likely to prove these contracts qualify as “swaps” under the Commodity Exchange Act, granting the CFTC exclusive jurisdiction. This decision temporarily prohibits Arizona from pursuing civil or criminal enforcement against Kalshi’s contracts on regulated exchanges until April 24, while a longer-term injunction is considered. The case is part of a larger national debate about prediction markets, with states like Utah and Nevada also attempting to block Kalshi's offerings, arguing they are akin to unlicensed gambling.
(Source：Cointelegraph)