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A three-judge panel of the U.S. Court of Appeals for the Second Circuit denied Kalshi and Coinbase requests for injunctions on Nov. 3, allowing Connecticut and New York authorities to continue civil lawsuits against prediction-market operators, according to DeFi Rate.
The panel said the companies “have failed to make the required showing that an injunction pending appeal is warranted.” The decision concerns temporary relief; the panel has not ruled on the merits of the appeals.
Connecticut and New York enforcement can proceed
The requested injunctions would have temporarily prevented authorities in the two states from enforcing their gambling laws against designated contract market operators.
Connecticut Attorney General William Tong can move forward with his lawsuit against Kalshi. New York Attorney General Letitia James has filed lawsuits against Coinbase, Gemini Prediction, Kalshi and Polymarket.
The states’ enforcement efforts differ in scope. Connecticut regulators sent cease-and-desist demands in September targeting sports event contracts. Gemini, Prophet X and WeBull have stopped offering those contracts to people in Connecticut.
New York’s litigation also includes contracts that settle on cultural and political events.
Appeals remain unresolved
The Second Circuit panel consolidated appeals from three cases in which Coinbase or Kalshi is the claimant. The companies could seek an en banc hearing before the full court, according to DeFi Rate.
In a separate Iowa case, Kalshi and Iowa Attorney General Brenna Bird asked the U.S. District Court for the Southern District of Iowa to pause Kalshi’s lawsuit while the Eighth Circuit considers its appeal of the denial of preliminary injunctive relief.
If you or someone you know has a gambling problem, call the California Problem Gambling Helpline at 1-800-GAMBLER (1-800-426-2537), 24/7.
More from playca.com – Utah sues Kalshi as founder raises prospect of Supreme Court fight – California Column Examines Kalshi and the Divide Over Betting Regulation – Los Angeles bar group uses $60,000 Kalshi trade to hedge Dodgers revenue
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Source: As reported by DeFi Rate.
