A federal judge has temporarily blocked Connecticut from enforcing gambling laws in Kalshi.

According to Odaily, a federal judge has temporarily blocked Connecticut's enforcement of gambling laws against prediction market platform Kalshi and ordered state regulators to suspend any enforcement action while the court weighs the company's preliminary injunction request.

U.S. District Judge Victor Bolden, in an order Monday, directed state officials not to take enforcement action against any of the conduct described in the cease-and-desist letter pending a court ruling on Kalshi's preliminary injunction motion. The cease-and-desist letter, issued last week by the Connecticut Department of Consumer Protection to Kalshi and Crypto.com, demanded they cease what the state regulator calls unlicensed online sports betting operations.

Kalshi argues that as a CFTC-designated contract marketplace, it enjoys exclusive federal jurisdiction, while Connecticut claims the contracts violate state gambling laws. Oral arguments for the preliminary injunction are scheduled for February 12, 2026.