Kalshi and Prediction Market Litigation with US States and Tribes
Court cases between prediction market operators, US states, tribal nations and federal regulators over whether sports event contracts fall under state gambling law, from Utah and New York to Louisiana and the Seventh Circuit.
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As of 28 October 2026: the United States and the CFTC sued Utah in federal court on 26 October, asking for a ruling that state gambling law is preempted for CFTC-regulated exchanges, after Utah sued Kalshi and Susquehanna in state court on 20 October. On 27 October the Seventh Circuit granted Kalshi permission to appeal the Wisconsin ruling that let the Ho-Chunk Nation's IGRA claims proceed; the district case is stayed pending the appeal.
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Regulator newsSeventh Circuit agrees to hear Kalshi's appeal in Ho-Chunk Nation tribal gaming case
A federal appeals court in Chicago has granted Kalshi permission to appeal a Wisconsin ruling that let the Ho-Chunk Nation pursue claims under the Indian Gaming Regulatory Act over sports event contracts offered on the tribe's lands.
Regulator newsCFTC and Justice Department sue Utah to stop gambling-law case against Kalshi and Susquehanna
The United States and the Commodity Futures Trading Commission have sued Utah and Attorney General Derek Brown in federal court, six days after the state sued Kalshi entities and Susquehanna in state court. The federal complaint asks for a declaration that Utah's gambling laws are preempted as applied to CFTC-regulated exchanges, and for injunctions barring the state from investigating or enforcing against those markets.
Regulator newsKalshi sues Louisiana in federal court to block state gambling enforcement against its sports event contracts
Prediction market operator Kalshi has filed a federal lawsuit against Louisiana's attorney general, governor and Gaming Control Board, saying it believes the state will "imminently" bring an enforcement action to stop its sports event contracts. Kalshi asks the court to declare that Louisiana's gambling and sports-wagering laws are preempted by the Commodity Exchange Act as applied to its exchange.
Regulator newsNew York Gaming Commission asks court to force Kalshi to hand over sports contract records
The New York State Gaming Commission has filed a verified petition in New York State Supreme Court, New York County, asking the court to order Kalshi Inc. and KalshiEX LLC to comply with administrative subpoenas it issued in July. The Commission says Kalshi has refused key requests in an investigation into whether its sports event contracts break New York's gambling laws, and that the records will help it decide whether to impose civil penalties and in what amounts. The petition was received by the court's electronic filing system on October 22, 2026.
Regulator newsUtah and Ohio take the prediction-market fight to market makers and suppliers
On 20 October 2026, Utah’s attorney general sued Kalshi and two Susquehanna market-maker entities, while Ohio’s casino regulator ordered licensed sportsbooks, suppliers, integrity monitors and labs to stop serving unlicensed event-contract operators and confirm compliance by 30 October.