Judge Tells CFTC and Kalshi: You Can't Even Intervene 🥲

A federal court has rejected both the Commodity Futures Trading Commission's motion for a preliminary injunction against Wisconsin and the separate intervention bids filed by Kalshi and Crypto.com in the same suit, delivering another setback to the prediction-markets industry as states continue to crack down on sports event contracts. The ruling, contained in court documents reviewed by outlets covering the case, denied the CFTC's attempt to block Wisconsin from enforcing its laws against platforms operating sports-prediction products, and also turned away Kalshi and Crypto.com's motion to intervene in the suit for a preliminary injunction.

The underlying litigation stems from Wisconsin's earlier lawsuits filed against Kalshi, Polymarket, Crypto.com, Robinhood, and Coinbase, which had offered sports-related event contracts under CFTC oversight. In response, the CFTC sued Wisconsin in April, arguing that federal regulation of these derivatives should preempt state-level enforcement actions. The court's rejection of the CFTC's preliminary-injunction motion signals that the judge is not prepared to grant immediate federal relief that would halt Wisconsin's enforcement while the broader jurisdictional dispute proceeds.

In the same order, the court denied Kalshi and Crypto.com's attempt to formally intervene in the CFTC v. Wisconsin case, leaving the regulator without the direct participation of the very platforms whose products are at the center of the state enforcement push. Industry observers noted that the combined outcome weakens the federal argument that prediction-market sports contracts fall squarely within exclusive CFTC jurisdiction, and it raises the prospect that state law may govern how such products are offered to users inside Wisconsin.

The decision adds to a string of adverse rulings for prediction-market operators seeking uniform federal treatment of event contracts tied to sporting outcomes, and it comes as Kalshi, Polymarket, Crypto.com, Robinhood, and Coinbase continue to defend against parallel actions in other jurisdictions. The CFTC and the affected platforms have not publicly disclosed their next procedural steps, including whether they will seek reconsideration, appeal the denial, or pursue alternative venues to challenge Wisconsin's enforcement framework as the case advances.