Kalshi plans appeal after Utah judge backs state gambling enforcement powers
Kalshi will appeal a Utah federal court ruling that allows state gambling laws to apply to its prediction markets.Summary
Kalshi is appealing a decision by U.S. District Judge Robert J. Shelby, who ruled that the Commodity Exchange Act does not preempt Utah's state gambling laws. The court rejected Kalshi's argument that federal oversight by the CFTC provides exclusive jurisdiction that shields its sports prediction contracts from state enforcement.
Judge Shelby concluded that the CEA allows for state regulation alongside federal oversight, noting that Congress preserves roles for both state and federal courts. This decision is significant as it allows Utah to classify certain proposition bets as gambling, which can carry felony charges.
The ruling has already gained traction outside Utah, with the New York Attorney General's Office citing the decision in a separate federal case. Kalshi's appeal to the Tenth Circuit will contribute to a growing split across multiple federal judicial circuits regarding the regulation of prediction markets.
(Source：Readwrite)