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

On December 10, U.S. Federal Judge Victor Bolden issued a temporary restraining order blocking Connecticut from enforcing gambling laws against prediction market platform Kalshi—pending the court’s ruling on the company’s preliminary injunction request. The order follows Connecticut’s Department of Consumer Protection (DCP) issuing an injunction last week against Kalshi, Robinhood, and Crypto.com, accusing the platforms of offering “unlicensed online sports betting” services. Kalshi contends it falls under federal exclusive jurisdiction (as a CFTC-designated contract market) and is not bound by state gambling rules. The firm faces nationwide regulatory scrutiny: it previously secured a similar injunction in New Jersey but recently lost a preliminary injunction to fend off Nevada enforcement actions. The court has set oral arguments for February 12, 2026, and ordered Connecticut officials to pause all enforcement actions in the meantime.