U.S. court denies Kalshi's temporary restraining order request, stating Congress does not intend to exclude the applicability of state gambling laws

Gate News: On March 10, a federal judge in Ohio, Sarah D. Morrison, ruled that there is no record indicating Congress intended to prioritize federal law over state sports betting regulations. Based on this, she dismissed the temporary restraining order filed by prediction market platform Kalshi. Previously, Kalshi requested the court to prevent Ohio regulators from enforcing local gambling laws. The platform operates prediction markets that allow users to bet on the outcomes of specific events, including sports results. Last year, the Ohio Casino Control Commission accused Kalshi of engaging in illegal sports betting activities in the state. In her ruling, the judge stated there is no evidence that Congress intended to supersede state authority over sports betting when passing relevant laws. Therefore, Kalshi cannot currently prevent state regulators from continuing enforcement. This case is part of a legal dispute between Kalshi and multiple state regulators. The core issue is whether the event contracts offered by the platform should be considered financial products regulated under federal derivatives laws or fall under state gambling regulations as sports betting. The case is seen as a significant test of prediction market legality, and its outcome could impact the future regulation of other prediction market platforms in the U.S., including Polymarket.