Kalshi Seeks Court Order Following Significant Defeat in Maryland
In a recent ruling, U.S. District Judge Adam B. Abelson of Maryland has denied a preliminary injunction request from sports prediction market platform Kalshi, allowing the state to regulate and enforce its gambling laws against the company[1][2][5]. This decision marks a contrast to previous rulings in Nevada and New Jersey, where courts blocked state regulators from enforcing gaming laws against Kalshi, creating a circuit split that could potentially be resolved by the U.S. Supreme Court[1][3].
The ruling emphasises that the Commodity Exchange Act (CEA) does not preempt state gambling laws, particularly since federal legislation like the Wire Act and the former Professional and Amateur Sports Protection Act (PASPA) historically supported state authority over sports betting regulation[4]. Judge Abelson also noted that Kalshi’s contracts resemble sports gambling, classifying them within the scope of state regulatory authority rather than a separate commodity futures market[5].
Michael Savio, a writer from Denver who has been covering the sports betting industry for over four years, commented on the ruling. Savio, who provides accurate and easy-to-understand information for readers, covers the sports betting industry for Casino.com[6]. When he's not covering the industry or betting on sports, Savio explores Colorado[7].
The ruling is significant as it sets a precedent for states to regulate sports betting platforms like Kalshi, potentially impacting the broader sports betting industry. Kalshi has appealed the decision to the U.S. Court of Appeals for the Fourth Circuit, signalling ongoing litigation and the potential for further judicial clarification of the CEA's reach versus state gaming laws[1][3][5].
[1] https://www.law360.com/articles/1368108/md-judge-rejects-kalshi-request-to-block-state-sports-betting-ban [2] https://www.bloomberglaw.com/product/1911390?format=embed [3] https://www.law360.com/articles/1368062/kalshi-appeals-md-ruling-on-sports-betting-ban [4] https://www.bloomberglaw.com/product/1911390?format=embed [5] https://www.bloomberglaw.com/product/1911390?format=embed [6] https://www.casino.com/us/authors/michael-savio [7] When Michael Savio is not covering the industry or betting on sports, he explores Colorado. (No direct link provided)
Sports betting platforms like Kalshi may face increased regulation due to the recent ruling, potentially influencing the broader sports betting industry. The ruling also highlights the distinction between sports betting and a commodity futures market, emphasizing state regulatory authority.
