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Kalshi Wins Temporary Restraining Order Against Connecticut Gambling Enforcement in Federal Challenge to Its Prediction Market

The U.S. District Court granted a temporary restraining order to pause Connecticut’s enforcement actions against Kalshi, while the court weighs Kalshi’s application for a preliminary injunction. Judge Victor Bolden issued the order.

The move follows the Connecticut Department of Consumer Protection injunction issued last week targeting Kalshi, Robinhood, and Crypto.com, accusing them of offering unlicensed online sports betting services.

Kalshi maintains that as a CFTC-designated contract market, it operates under federal exclusive jurisdiction, rendering it exempt from state gambling regulations.

The firm faces nationwide regulatory headwinds, having secured an analogous injunction in New Jersey previously, but recently losing its bid for a preliminary injunction against enforcement in Nevada.

A hearing for oral arguments is set for February 12, 2026, with Connecticut authorities instructed to pause active enforcement pending the court’s decision.

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