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Kalshi and Coinbase lose bid to shield sports contracts during appeals

A three-judge panel of the U.S. Court of Appeals for the Second Circuit declined on November 3 to block New York and Connecticut officials from enforcing gambling laws against the companies' sports contracts while their appeals proceed. The two-page order said the companies had not shown sufficient grounds for temporary protection, and it does not resolve the underlying cases or force either platform to halt trading.

The U.S. Court of Appeals for the Second Circuit declined on November 3 to temporarily block New York and Connecticut officials from enforcing gambling laws against Kalshi and Coinbase over their sports contracts, according to NewsBetting.

A three-judge panel issued the decision while the companies’ appeals remain pending. The ruling leaves them without the temporary protection they sought against state enforcement.

A limited procedural ruling

According to NewsBetting, the two-page order found that the companies had not established sufficient grounds for temporary protection. It does not resolve the underlying cases.

The order also does not require either platform to stop trading. Its immediate significance is the denial of an enforcement shield during the appeals, rather than a final determination of the disputes.

What it means for prediction markets

  • State enforcement remains a risk: The panel declined to block New York and Connecticut officials from applying gambling laws to the companies’ sports contracts while the appeals proceed.
  • The legal outcome remains open: The denial of temporary protection does not settle the underlying cases.
  • A trading halt is not mandated: Readers should distinguish the loss of interim protection from an order requiring either platform to cease trading.
KalshiInfiniti MarketsInfiniti Signals

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