TLDR A Utah federal judge rejected Kalshi’s attempt to block state gambling enforcement. Judge Robert Shelby said federal law does not override Utah’s authority over gambling. Kalshi has also lost cases in New York, Washington, and at the Sixth Circuit Court of Appeals. Kalshi agreed to leave Nevada by August 12 after failing to block users there. Minnesota remains Kalshi’s only recent win, with a new prediction market ban paused for now.
Kalshi has lost another court fight over state gambling laws. This time the setback came in Utah, where a federal judge sided with the state.
Judge Robert Shelby ruled that federal statutes cited by Kalshi do not preempt Utah’s power to enforce its own anti-gambling rules. He wrote that the law relied upon by the company does not override the state’s authority.
Kalshi had argued that changes made through the Dodd-Frank Act gave it federal protection from state oversight. Shelby rejected that claim outright.
He called the argument implausible. He pointed out that gambling has traditionally been regulated by states, not the federal government.
Shelby referenced Supreme Court precedent that has long supported state control over gambling policy. He said it was implausible that Congress would quietly reverse that approach through a law aimed at the 2008 housing crisis.
The judge also dismissed Kalshi’s claim that it could not follow both federal and state rules at once. He said the company had not shown that following both sets of rules was impossible.
Shelby noted that Kalshi’s own contracts already restrict certain groups from trading. Adding another restriction under Utah law, he said, would not be difficult for the company to manage.
More Losses Across the Country
Utah is only the latest state where Kalshi has run into legal trouble. Prediction markets are facing pressure in