The emergency motion filed by Kalshi for an injunction pending appeal has been denied by the U.S. 10th Circuit Court of Appeals. This decision allows Utah to enforce its gambling laws against Kalshi, potentially leading to legal action over its sports event contracts.

This ruling is another legal setback for Kalshi, which had sued Utah in February to prevent the state from enforcing its anti-gambling laws against the company’s event contracts. The decision comes shortly after U.S. District Judge Robert J. Shelby rejected Kalshi’s request for a preliminary injunction.

The 10th Circuit stated that Kalshi failed to demonstrate that the necessary factors for an injunction favored its case, including the likelihood of success on appeal, the threat of irreparable harm, potential harm to opposing parties, and the public interest. Consequently, the emergency motion was denied.

Kalshi initiated legal action against Utah in response to comments made by Governor Spencer Cox and Attorney General Derek Brown, alleging that Kalshi was operating illegally under Utah’s anti-gambling laws. Both officials expressed intentions to take legal action against the company for its offerings.

The company attempted to contact Utah’s attorney general to inquire about potential legal action regarding its prediction market services, but received no response. The 10th Circuit’s ruling now leaves Kalshi and its sports event contracts vulnerable to enforcement under Utah’s gambling laws.

This development mirrors similar proceedings in Connecticut, where state officials filed a lawsuit in August seeking to stop Kalshi from offering unlicensed sports betting. After a court denied Kalshi’s emergency request for an injunction pending appeal, Connecticut’s attorney general could pursue civil enforcement action against Kalshi.



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