Kalshi and Arizona gaming regulators asked the Ninth Circuit to pause briefing in an appeal that could clarify the reach of federal commodities law into state gambling enforcement. The parties requested the delay because several related appeals pending in the same circuit may affect the issues in the case. The dispute centers on whether the Commodity Exchange Act gives the Commodity Futures Trading Commission exclusive authority over event contracts offered through federally regulated exchanges. Kalshi’s opening brief is currently due June 8, and the proposed pause would hold briefing until 30 days after rulings in multiple related cases. The conflict intensified after Arizona sent Kalshi a cease-and-desist letter alleging illegal event wagering without required licensure and compliance, followed by Kalshi’s federal lawsuit and emergency requests for injunctive relief.
"On May 21, 2025, the Arizona Department of Gaming sent Kalshi a cease-and-desist letter. Regulators claimed the company was illegally offering "event wagering" without "licensure and compliance with Arizona statutes and regulations." Kalshi responded by filing suit in federal court on March 12, 2026, against Arizona gaming director Jackie Johnson and Attorney General Kristin Mayes. The company argued that federal law preempts Arizona from regulating contracts traded on federally approved Designated Contract Markets."
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