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The U.S. Court of Appeals for the Second Circuit denied Kalshi’s requests to halt enforcement in New York and Connecticut on Nov. 3, adding to appellate setbacks that include a September ruling allowing Ohio and Tennessee to pursue enforcement against the prediction market operator.
According to SBC Americas, the three-judge panel also denied Coinbase’s request for an injunction pending appeal in Connecticut. The decisions leave state authorities free to pursue enforcement while the cases continue.
Ohio enforcement followed a Sixth Circuit ruling
The Sixth Circuit issued a unanimous 3-0 ruling in September allowing Ohio and Tennessee to pursue enforcement actions against Kalshi. Ohio subsequently expanded its enforcement efforts to other prediction market operators, including Coinbase, SBC Americas reported.
PlayOhio reported on Oct. 22 that Ohio had sent cease-and-desist letters to 10 prediction markets and brokers.
Second Circuit denies temporary protection
The latest order covered Kalshi’s disputes with the New York State Gaming Commission and Connecticut Department of Consumer Protection, along with Coinbase’s case against Connecticut Attorney General William Tong and other state officials.
The court said the companies “failed to make the required showing that an injunction pending appeal is warranted.” The order did not provide a detailed rationale. It addresses temporary relief while appeals proceed, rather than resolving the underlying cases.
Federal judges in both states had previously denied Kalshi preliminary injunctions. New York Judge Analisa Torres held that the Commodity Exchange Act does not preempt the state’s gambling laws. Connecticut Judge Vernon Oliver wrote that the sports event contracts do not meet the act’s definition of a swap.
The appellate results have not all favored states: the Third Circuit ruled 2-1 for Kalshi against New Jersey in April. New Jersey’s Supreme Court petition stems from that ruling. The Supreme Court granted Kalshi a second extension to respond, setting a Dec. 7 deadline.
If you or someone you know has a gambling problem, call the Ohio Problem Gambling Helpline at 1-800-589-9966.
More from playohio.com – Kalshi, Polymarket Political Giving Tops $5 Million, Includes Ohio-Linked PAC
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Source: As reported by SBC Americas.
