Kalshi and Coinbase lose New York and Connecticut injunction bids

The US Court of Appeals for the Second Circuit has denied Kalshi and Coinbase Financial Markets' requests for injunctions that would have protected their sports event-contract offerings from state enforcement while their appeals proceed.

The 3 November order covers Kalshi's cases against officials in New York and Connecticut, and Coinbase Financial Markets' separate Connecticut case. The three appeals are being considered together.

Judges John M. Walker Jr., Dennis Jacobs and Joseph F. Bianco said the appellants had “failed to make the required showing” for injunctions pending appeal. The short order provides no further explanation beyond citing the applicable precedent.

Temporary protection denied; appeals continue

The decision denies the requested appellate protection against enforcement. It does not decide the underlying appeals or itself impose an immediate trading shutdown. The order does not specify changes to customer access or the treatment of existing positions.

The cases are KalshiEX LLC v. Williams, appeal 26-1835; KalshiEX LLC v. Cafferelli, 26-2239; and Coinbase Financial Markets Inc. v. Tong, 26-2297. Polymarket is not a party to these three appeals.

The New York appeal follows Kalshi's unsuccessful preliminary-injunction request before US District Judge Analisa Torres. In Connecticut, a district-court order records the denial of Kalshi's preliminary-injunction request on 10 August and a subsequent request for protection pending appeal.

Those disputes concern whether federal derivatives law prevents state gambling enforcement against sports event contracts. The latest order settles the request for temporary appellate protection, leaving the broader legal questions for the appeals.

Prediction Frontier reviewed the court's certified two-page order through a copy hosted by Sports Betting Dime.