SALT LAKE CITY — The state of Utah may begin cracking down on Kalshi and other predictive markets following a ruling by the 10th U.S. Circuit Court of Appeals.
On Tuesday, a pair of judges at the Denver-based appeals court refused to grant an emergency injunction request sought by Kalshi, who feared criminal prosecution and other action by the state blocking its services.
"When seeking an injunction pending appeal, a movant must show: (a) 'the likelihood of success on appeal'; (b) 'the threat of irreparable harm if the . . . injunction is not granted'; (c) 'the absence of harm to opposing parties if the . . . injunction is granted'; and (d) 'any risk of harm to the public interest,'" the 10th Circuit Court judges wrote in the order obtained by FOX 13 News. "Kalshi not shown these factors weigh in its favor. Accordingly, we deny its motion."
Kalshi did not immediately respond to a request for comment on the ruling. A spokesperson for Utah Attorney General Derek Brown told FOX 13 News he was "grateful the [10th Circuit Court] properly denied the stay request," but refused to say if any action against Kalshi or other predictive markets was imminent now.
In an interview with FOX 13 News in August, Brown hinted something may be coming.
Kalshi sought to block Utah from any crackdown against it after a lower court judge ruled the state can enforce its anti-gambling laws against the predictive market company. Utah has a constitutional prohibition against gaming, but Kalshi has argued that its market contracts aren't gambling and are governed by federal commodities laws. Kalshi pre-emptively sued Utah to block the state from taking any enforcement action.
