U.S. Appeals Court Denies Kalshi, Coinbase Injunction Requests, Allowing Two States to Enforce Gambling Laws

November 4 — According to SportsBettingDime, a three-judge panel of the U.S. Court of Appeals for the Second Circuit on November 3 local time denied motions for an injunction pending appeal filed by Kalshi, Coinbase and the U.S. Commodity Futures Trading Commission (CFTC), ruling that the appellants "failed to adequately demonstrate the necessity of issuing an injunction pending appeal." The panel has not yet published its specific reasoning. The ruling means New York and Connecticut can enforce their state gambling laws against the relevant prediction market products. Previously, the U.S. District Court for the Southern District of New York and the U.S. District Court for the District of Connecticut denied related injunction requests in July and August this year, respectively, finding that the Commodity Exchange Act (CEA) does not preempt state gambling laws. Lawsuits filed by New York and Connecticut against Kalshi are still ongoing, with New York seeking at least $36 billion in fines.