Federal Judge denies CFTC’s bid to shield Kalshi from Wisconsin gambling law
Kalshi’s fight to keep its sports prediction contracts under federal protection just hit a major roadblock. A Wisconsin federal judge has refused to block state gambling laws against Kalshi and four other major prediction platforms, rejecting the CFTC’s push for exclusive federal control.
Wisconsin Court Rejects CFTC’s Emergency Push
On July 29, 2026, U.S. District Judge William Griesbach denied the CFTC’s request for a preliminary injunction against Wisconsin. The regulator wanted the court to stop the state from enforcing its gambling laws against prediction platforms offering sports event contracts.
The CFTC argued that federally regulated prediction markets fall under its exclusive jurisdiction. However, the court rejected that argument at this stage, finding that registration with the CFTC does not automatically shield these platforms from state gambling laws.
The court also rejected motions from Kalshi and Crypto.com to intervene in the CFTC’s case.
Judge Says CFTC Rules May Not Override States
The decision centers on preemption, or whether federal law overrides state law. Judge Griesbach found that the Commodity Exchange Act does not automatically cancel Wisconsin’s gambling rules.
The court also indicated that the plain language of Wisconsin’s gambling laws could cover sports-related event contracts.
That creates a key problem for Kalshi and other prediction markets. While these platforms describe their contracts as financial products, state regulators argue that contracts tied to sports outcomes are effectively sports bets.
The judge also found that the CFTC had not shown enough “irreparable harm” to justify blocking Wisconsin from enforcing its laws.
Five Prediction Markets Are Already Facing Wisconsin Lawsuits
The ruling follows Wisconsin’s April lawsuits against Kalshi, Polymarket, Crypto.com, Robinhood and Coinbase. The state claims the platforms offered sports contracts without the required gaming licenses, violating Wisconsin gambling laws under Chapter 945.
The CFTC responded by suing Wisconsin, arguing that states cannot interfere with federally regulated derivatives markets.
That broader fight has now created a major regulatory clash between Washington and state authorities.
Where The Wisconsin Sports Case Is Heading Next
The Wisconsin decision adds to an increasingly divided legal landscape. The 3rd Circuit in New Jersey has ruled in favor of Kalshi’s position that federal law can preempt state restrictions.
For now, the Wisconsin cases are expected to return to state court. Legal expert Daniel Wallach said Wisconsin judges could issue preliminary injunctions preventing prediction platforms from offering sports contracts in the state.
A federal judge denied the Commodity Futures Trading Commission
(CFTC) a preliminary injunction that sought to block Wisconsin from enforcing its state gambling laws against prediction market platforms. The decision deals a blow to federal efforts claiming exclusive oversight over sports event contracts. Court Decision Details
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