Tenth Circuit Denies Kalshi Emergency Injunction Against Utah

SALT LAKE CITY – The Tenth Circuit denied Kalshi’s request to block Utah from enforcing state gambling laws while its federal appeal continues.

The Sept. 8 order leaves the prediction market operator exposed to Utah enforcement for now, although the appeals court has not yet decided the underlying case on its merits.

Kalshi sought an injunction pending appeal after U.S. District Judge Robert J. Shelby ruled against the company in August. The Tenth Circuit said Kalshi failed to establish the factors required for emergency relief, including likelihood of success on appeal, irreparable harm, harm to other parties and the public interest.

“Kalshi has not shown these factors weigh in its favor. Accordingly, we deny its motion”, the two-judge panel said in its brief order.

August Ruling Left Kalshi Subject to Utah Gambling Laws

The appeal stems from an August Utah ruling that allowed the state to enforce its anti-gambling laws against Kalshi. Shelby granted summary judgment to state officials and rejected the company’s argument that the Commodity Exchange Act prevents Utah from applying its gambling restrictions to contracts traded on a federally regulated exchange.

Kalshi operates a designated contract market regulated by the Commodity Futures Trading Commission and has argued in litigation around the country that federal commodities law gives the CFTC exclusive authority over its event contracts. Utah maintains that sports-related contracts offered by the platform amount to gambling subject to state law.

Shelby’s August decision concluded that the Commodity Exchange Act does not preempt Utah’s enforcement authority. The court entered judgment for state officials, and Kalshi filed its Tenth Circuit appeal the following day. The appellate case remains pending despite the denial of emergency relief.

Utah Strengthened Gambling Law in 2026

The dispute has developed alongside changes to Utah law targeting event-based wagering. Lawmakers passed HB 243 during the 2026 legislative session, clarifying that proposition bets fall within the state’s definition of gambling.

Utah prohibits commercial gambling, making the state a particularly significant test of Kalshi’s argument that its federally regulated status prevents state authorities from restricting event contracts. The latest order does not resolve that federal preemption question, but it means Kalshi cannot rely on an injunction to prevent Utah enforcement while the appeal proceeds.

Kalshi Faces Similar Battles Across Federal Courts

The Tenth Circuit development follows another recent appellate setback for the company. The Ninth Circuit backed Nevada’s authority over Kalshi’s sports-related contracts in August, rejecting the platform’s argument that federal commodities law displaced state gambling regulation.

Other courts have reached different conclusions, leaving the national legal position unsettled. The Third Circuit previously granted Kalshi protection from New Jersey enforcement, creating a significant disagreement among federal courts over the boundary between CFTC jurisdiction and traditional state gambling authority.

Kalshi’s Utah appeal will now continue without an injunction shielding it from state action. The Tenth Circuit’s eventual decision on the merits could add another appellate interpretation to a dispute that is increasingly being litigated across multiple federal jurisdictions.

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