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Utah Officials Get Support From Judges But Delay of Enforcement Actions Against Kalshi Remains Possible

Legal Writer

Publish Date: Sep 09, 2026

Fact checked by: Matt Moreno

Key Points

Two judges from the US 10th Circuit Court of Appeals denied Kalshi’s emergency request for a temporary injunction against Utah officials
Kalshi’s appeal of the trial court’s summary judgment in Utah Gov. Spencer Cox’s favor is still pending before the 10th Circuit
Utah law enforcement has still not taken any actual steps to enforce state’s anti-gambling laws against Kalshi

Another attempt by Kalshi to evade a perceived threat from authorities in Utah failed on Monday when two judges from the United States 10th Circuit Court of Appeals stated that Kalshi’s request for temporary protection fell short of the legal standards necessary to grant such relief. The result is clearer support for Utah law enforcement to pursue civil or criminal penalties for Kalshi for alleged violations of the state’s laws governing gambling.

Law enforcement officials in Utah have not announced any such campaigns nor provided public comment that they plan to undertake efforts of that nature. They may be waiting for the legal puzzle of event contract trading law in the US to reach a final resolution.

Kalshi suffers loss at the federal appellate court level

The Sept. 8, 2026 decision from judges Harris L. Hartz and Paul Joseph Kelly Jr. does not waste any words. The opinion succinctly states that Kalshi’s emergency request for a preliminary injunction while their appeal of Kalshi v. Cox is in progress before the same court is insufficient on four crucial points.

Kalshi failed to show that its appeal is likely to succeed
Kalshi failed to show how it would be irreparably harmed without the injunction
Kalshi did not demonstrate how Utah officials would not be harmed if the injunction is put into place
Kalshi did not demonstrate how the injunction would serve the public interest

As any one of those items alone would be sufficient to deny the injunction, this ruling was strongly in favor of the defendants in Kalshi v. Cox. As a result, there is further legal support for those officials taking action against Kalshi.

(Photo by Samuel Boivin/NurPhoto via Getty Images)

Kalshi lawsuit was preemptive move

US District Court Judge Robert J. Shelby became the first federal judge to rule on the merits of a lawsuit between Kalshi and state government figures on Aug. 4. Shelby stated in his opinion that he could find no reason why Utah’s enforcement of its gambling laws conflicts with federal law governing designated contract markets.

Kalshi filed the lawsuit against Utah Gov. Spencer Cox and other state officials in February 2026. The complaint followed social media posts from Cox stating that his administration would use its resources to disrupt trading on Kalshi and characterizing such trading as “gambling, pure and simple.”

However, no Utah law enforcement figures have since taken any actual action against Kalshi. That status quo may remain for a few reasons.

Why Kalshi may continue to operate in Utah in the short-term

Kalshi’s appeal of Kalshi v. Cox included the now-defeated request for immediate injunctive relief. The 10th Circuit has yet to rule on the merits of that appeal, though.

Utah Attorney General Derek Brown may wait for the court’s decision on the appeal’s merits before taking action against Kalshi. There is at least one more case with heavy implications.

New Jersey officials have petitioned the US Supreme Court in Kalshi v. Flaherty. The Third Circuit affirmed an injunction barring them from enforcing New Jersey’s gambling laws against sports event contract trading on Kalshi’s exchange.

A Supreme Court ruling affirming that injunction could short-circuit any enforcement actions in Utah. Therefore, Brown may be waiting to see if the Supreme Court takes up the case.

If the Supreme Court does review Kalshi v. Flaherty, Kalshi’s future will be on the line. Kalshi’s present status in Utah is legally tenuous but threats remain hypothetical.

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