A federal court in Arizona has temporarily blocked state enforcement of gambling laws against Kalshi, indicating that its event contracts may be regulated under federal derivatives law. The ruling follows a request from the Commodity Futures Trading Commission (CFTC).
Judge Michael Liburdi of the US District Court for the District of Arizona issued the order, siding with the CFTC and the federal government. The court's decision prevents Arizona officials from pursuing enforcement actions against Kalshi, which had been targeted under state gambling statutes. The case raises questions about the classification of Kalshi's event contracts in relation to federal derivatives law.