Kalshi faced a setback in its legal efforts as the Tenth Circuit Court of Appeals rejected its request to halt Utah's enforcement of its gambling laws while the company appeals a prior District Court ruling. The appeals court's brief response indicated that Kalshi did not satisfy any of the four criteria necessary for an emergency appeal pending an injunction. The judges stated, “Kalshi has not shown these factors weigh in its favor. Accordingly, we deny its motion.”
Previously, Kalshi encountered similar outcomes in appeals to the Second Circuit, which oversees states including New York and Connecticut, and the Sixth Circuit, covering Ohio among others.
As a result of this recent denial, Utah can continue to enforce its strict anti-gambling regulations against Kalshi. In a decision made in August, District Court Judge Robert Shelby not only denied Kalshi’s motion for an injunction but also granted summary judgment in favor of the state. Shelby remarked, “Kalshi concedes gambling is a field that has been ‘traditionally regulated by the states,’ not the federal government.” He further referenced the Supreme Court's position on the government’s interest in supporting the policy of states against gambling and the longstanding congressional support for states in this matter, which has been in effect since the early 19th century.
Governor Spencer Cox ramped up tensions earlier this year when he publicly critiqued the Commodity Futures Trading Commission (CFTC) Chair, Michael Selig, in a tweet. His comments emphasized the contentious relationship between state and federal authorities regarding prediction markets. Cox stated, “Mike, I appreciate you attempting this with a straight face, but I don’t remember the CFTC having authority over the ‘derivative market’ of LeBron James rebounds. These prediction markets you are breathlessly defending are gambling—pure and simple. They are destroying the lives…”
Utah is known for its stringent stance against gambling, influenced significantly by its ties to the Mormon church, which shapes the state's conservative perspective. The legislature addressed this issue directly by passing new legislation targeting prediction markets, specifically aimed at Kalshi and similar platforms. The law, HB 243, took effect in May 2026, further solidifying Utah’s position against gambling activity within its borders.
