The Federal Judge Halts Connecticut's Enforcement of Kalshi's Betting Law

BlockBeats News, December 10th, U.S. Federal Judge Victor Bolden has issued a temporary restraining order to prevent the state of Connecticut from enforcing gambling laws against the prediction market platform Kalshi until the court rules on the company's request for a preliminary injunction.

This action is in response to the Connecticut Department of Consumer Protection's injunction last week against Kalshi, Robinhood, and Crypto.com, alleging that these platforms were providing "unlicensed online sports betting" services.

Kalshi argues that as a designated contract market by the CFTC (Commodity Futures Trading Commission), it falls under federal exclusive jurisdiction and is not subject to state gambling regulations. The company is facing a nationwide regulatory challenge, having previously obtained a similar injunction in New Jersey but recently lost its preliminary injunction to shield it from enforcement actions in Nevada.

The court has scheduled a hearing for oral arguments on February 12, 2026, during which Connecticut officials have been asked to halt any enforcement actions.