Kalshi’s fight to keep his sports betting contracts under federal protection just hit the high street. A Wisconsin federal judge has refused to ban state gambling laws against Kalshi and four major betting platforms, refusing to push the CFTC to the sole federal authority.
Wisconsin Court Rejects CFTC’s Emergency Push
On July 29, 2026, US District Judge William Griesbach refused the CFTC’s request for a preliminary injunction against Wisconsin. The regulator wanted the court to stop the government from enforcing its gambling laws against betting platforms that offer sports contracts.
The CFTC said that the government’s futures markets fall under its jurisdiction. However, the court refused to argue at this stage, finding that registration with the CFTC does not hide these platforms from the state gambling laws.
The court also denied requests by Kalshi and Crypto.com to intervene in the CFTC case.
Judge Says CFTC Rules Can’t Go Beyond States
The ruling focuses on impunity, or whether federal law trumps state law. Judge Griesbach found that the Commodity Exchange Act does not preempt Wisconsin’s gambling laws.
The court also held that the plain language of Wisconsin’s gambling laws can cover gaming-related contracts.
That creates a key trouble for Kalshi and other prediction markets. Although these platforms describe their contracts as financial products, government regulators argue that the contracts related to the results of the games are sports betting.
The judge also found that the CFTC had not shown enough “irreversible harm” to justify barring Wisconsin from enforcing its rules.
Five Predictive Markets Already Facing Lawsuits in Wisconsin
The ruling follows April’s Wisconsin lawsuits against Kalshi, Polymarket, Crypto.com, Robinhood and Coinbase. The state alleges that platforms offer gaming contracts without the necessary gaming licenses, a violation of Wisconsin’s gambling laws under Chapter 945.
The CFTC responded by suing Wisconsin, arguing that states cannot interfere with federally regulated markets.
This great war has now caused a great conflict between Washington and the authorities.
Where Wisconsin’s Sports Law Is Heading Next
The Wisconsin decision extends the legal divide. The Third Circuit in New Jersey ruled in Kalshi’s favor that state law can preempt state restrictions.
Meanwhile, the Wisconsin cases are expected to return to state court. Legal expert Daniel Wallach said a Wisconsin judge could issue a restraining order to prevent sports betting from awarding gaming contracts in the state.
Kalshi and the CFTC are also expected to appeal the decision to the 7th Circuit, setting up another major test that regulates America’s fast-growing market.
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