Judge Robert J. Shelby said the Commodity Exchange Act does not override Utah's gambling ban, handing states new support in a widening fight with Kalshi and the CFTC over prediction markets.
U.S. federal district judge Robert J. Shelby ruled Tuesday that Utah may enforce its anti-gambling laws against Kalshi, finding the Commodity Exchange Act does not expressly or implicitly preempt state restrictions on the company's prediction-market contracts, which Kalshi argues are federally regulated swaps. The ruling, hailed by Utah Attorney General Derek Brown and at odds with CFTC Chair Mike Selig's claim of exclusive federal jurisdiction, is a setback for prediction-market firms and the Trump administration in a broader fight over whether states can treat the platforms as gambling; Kalshi later said it would appeal to the Tenth Circuit, and New York cited Shelby's decision in its own case.