The U.S. Appeals Court for the District of Columbia Circuit Wednesday granted the Commodity Futures Trading Commission (CFTC) motion for a voluntary dismissal of its appeal against Kalshi regarding election event wagering.
The CFTC made the voluntary dismissal request Monday, capping a bewildering day at the federal agency in which members of its staff were placed on what it called “administrative leave” for undisclosed potential violations.
The appellate court’s action means the September ruling by the U.S. District Court for the District of Columbia in favor of Kalshi to allow offerings of event contracts for the November 2024 presidential election will now stand.
One court proceeding down, multiple to go
With the CFTC no longer seeking an appeal of the U.S. District Court decision on presidential elections, Kalshi can now turn its undivided attention to lawsuits filed by gaming agencies in Nevada, New Jersey, and Maryland attempting to block cease-and-desist orders so it can continue offering sporting event contracts.
Regulators in those three states have argued such contracts are illegal, but district court judges in both Nevada and New Jersey have given early wins to Kalshi with preliminary injunctions.
In the most recent ruling April 28 in the New Jersey, U.S. District Court Judge Edward S. Kiel said Kalshi “demonstrated a reasonable chance of prevailing” and found “that — at minimum — Kalshi has identified harms to its reputation and goodwill that are both likely without injunctive relief and not able to be remedied following trial.”
Since the start of 2025, Kalshi has been making noise in the sports betting space, offering an increasing number of sports-related event contracts going beyond championships and into single-game results. Kalshi filed self-certifications with the CFTC in January to offer an expanded number of sports-related event contracts.
The CFTC also canceled a policy roundtable discussion with gambling stakeholders scheduled for last week.
