Judges doubt Kalshi’s sports bets are swaps, deny injunction
New York’s lawsuit seeks billions in damages & its order appears to cover all Kalshi contracts, not just sports.
The hit
The Second Circuit refused to give Kalshi an injunction shielding it from New York & Connecticut gambling law enforcement, according to InGame. A three-judge panel voiced doubt that sports event contracts qualify as swaps during a hearing, then denied the injunction hours later.
Why it matters
Without the injunction, Kalshi stays exposed to state-court lawsuits that could ban its sports contracts in New York & Connecticut. New York’s case is the bigger threat: according to InGame, its requested order appears to cover all types of contract, not just sports ones. Kalshi lawyer Will Havemann told the court the order would shut down the exchange’s contracts nationwide.
The record
| Court | US Court of Appeals for the Second Circuit |
|---|---|
| Judges on panel | John M. Walker Jr., Joseph F. Bianco, Dennis Jacobs |
| Hearing date | Tuesday (InGame) |
| New York lawsuit | Seeks billions in damages from Kalshi (InGame) |
| CFTC response | Ordered Kalshi to disobey New York’s order if it takes effect (InGame) |
What happens next
Kalshi is still appealing the underlying district court rulings & separately trying to move the state-court cases to federal court, a bar its past attempts have failed to clear.
Sources: Second Circuit Denies Kalshi Injunction
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