Operator v. state
KalshiEX LLC v. Johnson
U.S. District Court for the District of Arizona, 2:26-cv-01715
On appeal
Judge Michael T. Liburdi denied Kalshi's own PI motion (April 8, 2026) but granted the United States and CFTC a PI (May 5, 2026) barring Arizona's enforcement against CFTC-regulated exchanges, including the criminal case. Cross-appeals are stayed at the Ninth Circuit.
The question
Whether the Commodity Exchange Act preempts Arizona gambling or sports-wagering law as applied to event contracts listed on a CFTC-designated contract market.
Kalshi sued Arizona days before the state disclosed a criminal indictment against it. The federal government's suit was consolidated into this case in April 2026, and Crypto.com's exchange intervened. The court issued a TRO and then a preliminary injunction for the federal plaintiffs, concluding they were likely to succeed in showing Arizona's gambling laws are preempted as applied to CFTC-regulated exchanges.
Docket timeline
Arizona asked the Ninth Circuit (No. 26-4281) to summarily vacate the preliminary injunction as to sports contracts; it renewed the request on Sept. 14, 2026.
Source: defirate.com
Kalshi appeals the denial of its own motion.
Source: dockets.justia.com
PI granted for the United States and CFTC; TRO dissolved.
Source: dockets.justia.com
The district court issued a preliminary-injunction order (scope and beneficiaries not verified).
Source: defirate.com
Crypto.com's exchange allowed to intervene.
Source: dockets.justia.com
TRO granted for the United States and CFTC.
Source: cftc.gov
Kalshi's PI and TRO motions denied.
Source: dockets.justia.com
Consolidated with United States v. Arizona (No. 2:26-cv-02246).
Source: dockets.justia.com
Kalshi seeks TRO/PI; defendants disclose a state criminal indictment.
Source: dockets.justia.com
Complaint filed.
Source: dockets.justia.com
Sources
- Justia docket: KalshiEX v. Johnson, D. Ariz. 2:26-cv-01715
- CFTC release 9208-26: CFTC seeks to enjoin Arizona enforcement (2026-04-09)
- CFTC release 9211-26: TRO blocks Arizona criminal enforcement (2026-04-10)
- Arizona Mirror: criminal case against Kalshi blocked by federal judge (2026-05-05)
- Vultax prediction market lawsuit tracker (updated 2026-10-19)
- DeFi Rate prediction market lawsuit tracker (updated 2026-10-20)
- DeFi Rate prediction-market legal tracker snapshot (2026-10-11)