Catenaa, Tuesday, December 16, 2025-Prediction markets platform Kalshi secured a temporary halt on enforcement actions from Connecticut regulators as a legal dispute intensifies over whether its contracts constitute illegal gambling.

US District Judge Vernon Oliver ordered Monday that the state’s Department of Consumer Protection suspend any action while the court reviews Kalshi’s request for preliminary relief.

The ruling follows cease-and-desist notices issued December 2 to Kalshi, Robinhood and Crypto.com, alleging the firms offered unlicensed sports wagering.

Kalshi filed a lawsuit against Connecticut one day later, contending its event-based markets are federally regulated derivatives overseen by the Commodity Futures Trading Commission.

Kalshi noted that the CFTC granted it designated contract market status in 2020, asserting that Connecticut’s gambling laws do not apply and that the state is overstepping its authority.

The company also requested a temporary restraining order to prevent disruptions to its operations.

Judge Oliver’s interim order protects Kalshi while the case proceeds.

Connecticut regulators must respond to the complaint by Jan. 9, 2026, with Kalshi filing additional supporting arguments by January 30.

Oral arguments are scheduled for mid-February.

Kalshi has faced similar regulatory challenges this year in Arizona, Illinois, Montana and Ohio, highlighting growing tensions between state authorities and federally regulated cryptocurrency and prediction markets.