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Federal Court Denies Effort by Kalshi to Halt Ban by Maryland Gaming Regulators

Dan Holmes

Sports Writer

Publish Date: Aug 01, 2025

Fact checked by: Sara Jane Gamelli

Key Points

Federal Dourt Denies Kalshi Motion to Stave off Cease and Desist Order in Maryland
Kalshi had Previously Won Court Cases to Stiff-Arm Orders in New Jersey, Nevada
Critics Claim Kalshi is Offering Sports Betting via its Predictions Market Software

Kalshi may soon be shuttered in another state wary of predictions markets and sports gambling by that operator.

Federal United States District Court Judge for the District of Maryland, Adam B. Abelson, ruled against Kalshi's motion for a preliminary injunction against Maryland officials who sent a cease-and0desist order.

Maryland Lottery and Gaming control was the plaintiff, and Kalshi claimed that it did not have the authority to deny that company offer its' products in the state. Kalshi claimed that the federal Commodity Exchange Act superseded the gaming laws in Maryland. Judge Abelson did not agree.

“Kalshi has moved to enjoin the Maryland Lottery and Gaming Control Agency, and the Maryland Lottery and Gaming Control Commission, from pursuing civil and criminal enforcement of Maryland’s gaming laws against Kalshi for offering sports-event contracts in Maryland without registering as a sports wagering licensee," Abelson wrote in his decision released on Friday.

"Kalshi argues that Maryland’s gaming laws are preempted by the federal Commodity Exchange Act," Abelson continued, "and thus cannot be enforced with respect to Kalshi’s sports-event contracts when offered in Maryland on its designated contract market platform.

For the reasons explained below, Kalshi has failed to show a likelihood of success on the merits of its claim that the Commodity Exchange Act preempts Maryland’s gaming laws. The motion for a preliminary injunction will be denied."

Kalshi is a prominent predictions market platform that offers "betting swaps" and "sports events contracts" that critics argue operate similarly to legal sports betting. Consumers can place funds into swaps on the outcome of events such as political elections, reality television shows, and sporting events.

A handful of states are taking a look at Kalshi, even as the federal government, guided by new Trump appointee Brian Quintenz, who has a lineage in commodities, securities, and crypto. Donald Trump Jr. joined the board of directors of Kalshi last January.

Seven states have now issued cease-and-desist orders to Kalshi, setting up a standoff with federal regulators who under Quintenz and Trump, seem keen on expanding predictions markets.

In both New Jersey and Nevada, Kalshi was successful in challenging cease and desist letters from state regulators, at least temporarily staving off eviction from those states.

Kalshi was quick to promise an appeal of the decision in Maryland's federal court.

"We are disappointed with the court’s decision and will move for an immediate stay of the ruling. We are on the right side of the law, and ultimately expect to prevail in this fight," the company said in a prepared statement. Check out our Ballislife Play section for the latest news and updates.

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