MT ยท Checked Oct. 21, 2026
Prediction market law in Montana
Enforcement, no lawsuit
Montana's Gambling Control Division twice ordered Kalshi to stop sports contracts; Kalshi's federal suit ended in a stipulated dismissal under which the state holds off enforcement for now.
The Montana Department of Justice's Gambling Control Division sent Kalshi cease-and-desist letters on March 26, 2025 and April 6, 2026, treating its sports event contracts as unlicensed sports wagering. Kalshi sued Attorney General Austin Knudsen, Division officials and five commission members in federal court in April 2026. Judge Donald Molloy denied Kalshi a preliminary injunction on Aug. 27, 2026, and the case was dismissed on a joint stipulation on Sept. 21, 2026. Under the stipulation, the defendants will not start enforcement over Kalshi's exchange-traded event contracts until Kalshi's Ninth Circuit rehearing bid in the Nevada case is resolved, and the attorney general's side must then give 30 days' written notice before acting.
Timeline of state actions
Court order, Kalshi
The court dismissed the case on a joint stipulation filed Sept. 17, 2026: claims against the five commission members with prejudice, and against the attorney general, a Division official and the Division without prejudice. The defendants agreed not to begin enforcement over Kalshi's event contracts until Kalshi's Ninth Circuit rehearing bid in KalshiEX v. Assad is resolved, after which the attorney general's side must give 30 days' written notice.
Source: Joint stipulation of dismissal, D. Mont. No. 6:26-cv-00028 (via DeFi Rate)
Court order, Kalshi
Judge Donald Molloy denied Kalshi's preliminary injunction without prejudice, finding it had not shown likely irreparable harm after repeatedly agreeing to pause the case.
Source: InGame
Operator lawsuit, Kalshi
Kalshi sued Attorney General Austin Knudsen, Gambling Control Division officials and five commission members in the District of Montana (No. 6:26-cv-00028), seeking to block enforcement on federal preemption grounds.
Source: SBC Americas
Cease-and-desist, Kalshi
The Division sent a second cease-and-desist letter, saying the earlier forbearance depended on Kalshi's Nevada injunction, which had since been dissolved.
Source: SBC Americas
Other development, Kalshi
According to Kalshi's later complaint, the Division confirmed in writing that it would not enforce against Kalshi while Kalshi's Nevada litigation was pending and would give notice first.
Source: SBC Americas
Cease-and-desist, Kalshi
The Gambling Control Division's chief legal counsel ordered KalshiEX to stop letting people in Montana trade sports event contracts, citing state gambling and sports-wagering statutes and warning of legal action.
Source: Montana DOJ Gambling Control Division letter (via KTVH/Scripps)
Laws and bills
No enacted laws or pending bills specific to prediction markets found.
Court cases
- KalshiEX LLC v. KnudsenDismissed