Utah Court Dismisses Kalshi's Federal Preemption Claims in Anti-Gambling Lawsuit

Federal Judge Shelby ruled Utah anti-gambling laws apply to Kalshi sports contracts, denying injunction. NY AG cites ruling against CFTC. Kalshi plans appeal.

Woofun AI reports that U.S. Federal District Judge Robert J. Shelby granted Utah’s motion for summary judgment, ruling that the Commodity Exchange Act does not preempt state anti-gambling statutes regarding Kalshi’s sports event contracts. The court denied Kalshi’s request for a preliminary injunction, noting that ambiguous jurisdictional provisions generally do not support federal preemption and rejecting arguments based on Dodd-Frank Act amendments.

Kalshi spokesperson Jacki McGavick stated the company disagrees with the decision and intends to appeal to the Tenth Circuit Court of Appeals. While Utah users retain access to these contracts pending enforcement action, New York’s Attorney General has already referenced this ruling to oppose the CFTC’s motion for a preliminary injunction in a separate lawsuit alleging unlicensed gambling operations.