Kalshi will continue to offer sports-related event contracts in Connecticut, at least for now.
Connecticut District Court Judge Vernon Oliver ordered the Connecticut Department of Consumer Protection (DCP) to avoid taking any sort of enforcement action against Kalshi until the court has had time to consider Kalshi’s request for a preliminary injunction.
The DCP houses gaming regulators in the state of Connecticut and sent cease and desist letters to Kalshi, Crypto.com and Robinhood regarding the companies’ sports-related event contracts on Dec. 2. The following day, Kalshi filed suit against the regulator, seeking a preliminary injunction to stay operational in the state.
In that motion, Kalshi argued that the scope of DCP’s request would offline not only sports contracts but every contract offered on the site.
Kalshi clear to offer sports contracts through at least Feb. 12
DCP has until Jan. 9 to respond to Kalshi’s claim. The judge will hear oral arguments on the matter on Feb. 12.
That means Kalshi will be available to continue offering its full suite of contracts in the state throughout the NFL postseason, which concludes with the Super Bowl on Feb. 8.
SBC Americas reached out to DCP to determine if the department will cease pursuing enforcement action for Robinhood and Crypto.com as well and the department said they cannot comment on pending litigation.
With the reprieve in Connecticut, Kalshi has managed to stay online in another state as the lawsuits and cease and desists continue to mount.
Appeals keeping Kalshi sports contracts online elsewhere
In Nevada, Judge Andrew Gordon reversed his initial ruling and told Kalshi it needs to stop offering sports contracts in the state after all. The site still has those offerings up while it is appealing the decision in the Ninth Circuit Court.
Maryland is another state where the regulator won the first round and a judge denied Kalshi’s request for a preliminary injunction. That is currently on appeal in the Sixth Circuit Court, where the Maryland Lottery’s response to the appeal is due next week. In August, the lottery agreed not to pursue enforcement action until there is a decision on the appeal.
Underdog Sports filed an amicus brief in support of Kalshi’s appeal in the case and the window for parties to file amicus briefs in support of the lottery will open shortly after it files its response. A number of tribal groups filed an amicus brief in the district court arguing against Kalshi.
