Connecticut will not be able to enforce its cease-and-desist order against Kalshi until a decision is made on whether to grant the prediction market an injunction, a court ruled Monday, meaning Kalshi’s sports event contracts will remain available in the state until at least mid-February.
Kalshi sued the Connecticut Department of Consumer Protection in the U.S. District Court for the District of Connecticut last week, after receiving a cease-and-desist letter ordering it to shut down its sports event contracts in the state. As part of the lawsuit, it asked for an injunction to prevent the state from enforcing the cease-and-desist while the case is being considered.
An order from that court determined that the cease-and-desist cannot be enforced until a decision is made on the injunction.
“Per the parties’ joint stipulation, the Court orders Defendants to refrain from taking enforcement action against Kalshi regarding any conduct described in the Cease and Desist Letter dated December 2, 2025 pending the Court’s disposition of Plaintiff’s motion for a preliminary injunction,” the court wrote.
That means Kalshi’s sports contracts will remain available in Connecticut until a decision on an injunction is made.
The court’s timeline means that the decision on the injunction will not take place for at least two months.
Connecticut must file its response to Kalshi’s initial motion for an injunction by Jan. 9, 2026. Kalshi may then reply to the response by Jan. 30. Oral argument will then take place on Feb. 12 at 10 a.m.
Connecticut is one of six states in which Kalshi has brought a lawsuit against state authorities after receiving a cease-and-desist letter, while a seventh state, Massachusetts, sued Kalshi in state court. None of the cease-and-desists have successfully been enforced, however, meaning Kalshi’s sports event contracts remain available in every state. In Maryland, where Kalshi was denied an injunction, and Nevada, where an injunction was dissolved, Kalshi appealed those decisions.
Washington warns on prediction markets
Elsewhere, the Washington State Gaming Commission on Tuesday sent out a warning about prediction markets, though it appeared to be softer than other states’ messages.
“Due to the increased interest in prediction markets (online operators that offer event-based contracts for purchase), the Washington State Gambling Commission is issuing the following guidance: Offering events-based contracts or participating in these markets is not authorized in Washington State,” the message read.
“While prediction markets are an unauthorized activity in Washington State, we acknowledge that the future of prediction markets, including those for sports, political events, etc., remains a subject of ongoing litigation both federally and in other states. We will continue to monitor the ongoing cases as they progress through the court system and will provide updates once the courts provide further guidance.”
Sportsbooks are legal in Washington, but only at tribal casino properties, either via retail sportsbooks or apps that are available only on property.
Though tribes have the exclusive right to offer sports betting in Washington, DraftKings is partnered with the Tulalip Tribes to offer its app on their properties, and FanDuel has a similar arrangement with the Suquamish Tribe. Both companies have said they plan to offer sports event contracts in the near future, but will focus on states where their sports betting apps are not available.
States such as Ohio, Illinois, and Arizona have warned regulated sportsbook operators that getting involved with prediction markets could be grounds for license revocation. Fanatics, which does not operate its sportsbook in Washington, launched its prediction market product in the state last week.
