A federal judge temporarily blocks Connecticut from enforcing gambling laws against Kalshi

A federal judge has temporarily blocked Connecticut from enforcing gambling laws against the prediction market platform Kalshi and ordered state regulators to refrain from taking any enforcement action while the court weighs the company's request for a preliminary injunction.

U.S. District Judge Victor Bolden instructed state officials in a Monday order not to take enforcement action against any conduct described in the cease-and-desist letter until the court rules on Kalshi's motion for a preliminary injunction. The previous cease-and-desist letter was sent by the Connecticut Department of Consumer Protection to Kalshi and Crypto.com last week, demanding that they stop what the state regulators called unlicensed online sports betting operations.

Kalshi argues that, as a CFTC-designated contract market, it enjoys exclusive federal jurisdiction, while Connecticut claims that these contracts violate state gambling laws. The oral arguments for the preliminary injunction are scheduled for February 12, 2026.