Share 
Kalshi suffered two more court setbacks over sports event contracts, with federal judges in Utah and Iowa refusing to block state enforcement while the cases move forward. The latest rulings add to a growing list of losses that could further limit where the company can offer the product in the U.S.
Utah and Iowa both deny Kalshi interim relief
According to reporting from _The Event Horizon_, the Tenth Circuit denied Kalshi’s emergency motion for an injunction pending appeal that sought to stop Utah officials from taking civil or criminal action against the company during the appeal. In practical terms, the outlet wrote, “Utah can now enforce its strict anti-gambling laws against Kalshi.”
In Iowa, a federal district court denied Kalshi’s motion for a preliminary injunction against state officials. The court found Kalshi is unlikely to succeed on its claim that the Commodity Exchange Act preempts Iowa gambling laws.
Those decisions follow another recent setback in the Ninth Circuit, where Kalshi lost its preliminary-injunction appeal against Nevada tied to sports event contracts.
Why the map matters for prediction markets
The article says Kalshi now faces headwinds in the Second, Sixth, Ninth, and Tenth circuits. Together, those four circuits represent 22 states and more than 40% of the U.S. population.
That matters because state-by-state enforcement pressure could shrink the addressable market for sports event contracts even before any final merits decisions arrive. The report notes California sits in the Ninth Circuit and is widely viewed as an important source of retail sports volume for Kalshi and other prediction market platforms, although California has not sent a cease-and-desist letter to Kalshi on sports event contracts.
The article also says Kalshi has already pulled back in Nevada, Michigan, and Washington.
Broader prediction market moves continue
Even as the legal fight intensifies, other operators are still expanding around the category. The article says Robinhood will begin routing a selection of football event contracts to Crypto.com’s prediction markets platform through its CFTC-regulated exchange and clearinghouse beginning Sept. 8. It also says Robinhood began routing contracts to Rothera in June through its joint venture with Susquehanna International Group.
Elsewhere, Polymarket launched its social product “Squads” inside the U.S. app, Kalshi self-certified perpetuals for gold and silver, and Rothera self-certified hockey.
For players and market watchers, the near-term issue is simple: legal access to sports event contracts remains unsettled, and further state action could keep changing where these products are available.
—
Source: As reported by Dustin Gouker.
