A federal appeals court judge rejected Kalshi’s motion for a temporary injunction on Wednesday evening. The decision permits New York state regulators to initiate enforcement measures against the prediction market platform on or after Thursday.
The court’s ruling removes the procedural pause that would have shielded the company from state intervention while its lawsuit remains active. New York authorities can now proceed with regulatory actions without awaiting the final judicial outcome.
The legal dispute originates from a state directive ordering Kalshi to discontinue derivative contracts linked to sporting events. The firm filed the lawsuit to contest the restriction and preserve its current trading operations during the review.
Regulatory Timeline and Next Steps
The denial shifts the case toward the state’s enforcement schedule. Kalshi will continue its legal challenge while New York officials prepare to implement their regulatory measures according to the established deadline. The ruling details were initially reported by Gambling Insider.