A Second Circuit panel rejected separate requests from Kalshi and Coinbase to temporarily shield their sports contracts from regulatory scrutiny in New York and Connecticut. The judges appeared skeptical of the platforms' arguments distinguishing sports event contracts from traditional sports bets.
The ruling came on Tuesday, following the platforms' attempts to avoid enforcement actions from state gambling regulators. The panel's decision suggests a lack of conviction in the platforms' legal distinctions.
Kalshi and Coinbase had sought to protect their operations while legal challenges play out. The denial of their bids means the platforms will face continued regulatory pressure in the near term.