Kalshi Wins Early Court Shield in Connecticut Gambling Fight

A US judge granted Kalshi temporary protection from Connecticut’s enforcement efforts.

The ruling prevents Connecticut regulators from taking action against Kalshi while the case proceeds. This now adds to Kalshi’s mounting legal battles across multiple states, including New York, Massachusetts, New Jersey, Nevada, Maryland and Ohio. Meanwhile, Terraform Labs co-founder Do Kwon faces a complex sentencing process in the US as Judge Paul Engelmayer examines how his criminal exposure in South Korea and prior custody in Montenegro should influence the outcome. Kwon pleaded guilty to wire fraud charges tied to the collapse of Terra, and could ultimately face decades in South Korea even after serving time in the US.

Kalshi Scores Legal Reprieve

A US federal judge gave prediction markets platform Kalshi a temporary lifeline after the state of Connecticut tried to shut down its operations. This is one of the latest developments in the escalating national battle over whether federally regulated event-contract platforms fall under state gambling laws.

The dispute began on Dec. 2, when the Connecticut Department of Consumer Protection issued cease and desist orders to Kalshi, as well as to Robinhood and Crypto.com, accusing them of running unlicensed online gambling operations by offering what the state deemed to be sports wagering through event-based prediction contracts.