TechFlow news, December 10 — According to Decrypt, U.S. federal judge Victor Bolden has ordered a temporary halt to Connecticut's enforcement of gambling laws against prediction market platform Kalshi, pending the court's decision on the company's request for a preliminary injunction. The move responds to a cease-and-desist order issued last week by Connecticut's Department of Consumer Protection to Kalshi, Robinhood, and Crypto.com, accusing the platforms of offering "unlicensed online sports betting" services.
Kalshi argues that as a CFTC-designated contract market, it falls under exclusive federal jurisdiction and is therefore exempt from state gambling regulations. The company is facing regulatory challenges nationwide—having previously obtained a similar injunction in New Jersey, but recently losing a preliminary injunction in Nevada that would have shielded it from enforcement actions.
The court has scheduled oral arguments for February 12, 2026, during which Connecticut officials are required to suspend any enforcement activities.
