Kalshi and Coinbase Financial Markets won a partial preliminary injunction in Illinois on October 2, 2026, as Ohio continued to pursue enforcement against Kalshi's sports-event contracts. U.S. District Judge Martha M. Pacold found that the contracts likely qualify as swaps under the Commodity Exchange Act and that several Illinois wagering, licensing, age, location and event restrictions likely conflict with federal law. The injunction covers Kalshi and affiliated entities including Coinbase Financial Markets, but leaves Illinois' fee structure for further briefing. In Ohio, the 6th U.S. Circuit Court of Appeals declined to block state enforcement, finding that Kalshi had not sufficiently established exclusive Commodity Futures Trading Commission jurisdiction or federal preemption of gambling laws. The divergent rulings leave unresolved whether sports-event contracts are federally regulated derivatives or state-regulated wagers.