U.S. court denies Kalshi's temporary restraining order request, stating Congress does not intend to exclude the applicability of state gambling laws

Odaily Planet Daily reports that U.S. Federal District Court Judge Sarah D. Morrison ruled that there is no record indicating Congress intended to prioritize federal laws over state sports betting regulations. Based on this, the court dismissed the temporary restraining order filed by prediction market platform Kalshi.

Kalshi had previously requested the court to prevent Ohio regulators from enforcing local gambling laws. The platform operates prediction markets that allow users to bet on the outcomes of specific events, including sports results. Last year, the Ohio Casino Control Commission accused Kalshi of engaging in illegal sports betting activities in the state.

In her ruling, the judge stated that there is no evidence suggesting Congress intended to supersede state authority over sports betting when enacting relevant laws. Therefore, Kalshi cannot currently prevent state regulators from continuing enforcement.

This case is part of a legal dispute between Kalshi and multiple state regulators. The core issue is whether the platform’s event contracts should be considered financial products regulated under federal derivatives laws or fall under state gambling laws as sports betting.

The case is seen as a significant test for the legality of prediction markets, and its outcome could influence the future regulatory landscape for other prediction market platforms in the U.S., including Polymarket.