industry/LAWS AND REGULATIONS

Kalshi goes on the offensive against Montana

Kalshi moves in on Montana’s AG and other officials, hoping to bar enforcement action against it preemptively The company has won certain cases across the United States, but has lost in other places

Written by Casino House Group Editorial Team

Published on April 16, 2026

Summary

Kalshi moves in on Montana’s AG and other officials, hoping to bar enforcement action against it preemptively
The company has won certain cases across the United States, but has lost in other places
This is an ongoing situation, with more updates to be provided when available

Kalshi is moving preemptively against Montana, where the prediction market platform has asked a federal judge to bar local officials from using gaming law to prevent the company from offering its event contracts locally.

Kalshi moves first in Montana, tries to block potential enforcement efforts

The company has decided to go on the offensive in the Treasure State, following successes in New Jersey and specifically, an important - if shaky- win in Arizona, where the US Court of Appeals for the Third Circuit ruled that the state could not pursue criminal charges against the company for the time being. Kalshi has been facing increased scrutiny and pressure from state gaming authorities, who have insisted that the company does not adhere to established gambling laws in their jurisdictions, going beyond established regulatory statutes to offer its product. For its part, Kalshi has rebuffed those claims, arguing that its operations fell under the remit of the Commidity Futures Trading Commission (CFTC). The latter has confirmed this and has even filed a lawsuit against several states, among which is Arizona, for attempting to preempt federal regulation and replace it with local gaming laws. This is the argument that Kalshi has made in Montana, too, with the company insisting that the Commodity Exchange Act is the federal statute that regulates the company, and the CFTC is the only regulatory watchdog to enforce it. Kashi also argues that the Constitution and laws of the US shall be the supreme Law of the Land, once again insisting that local regulatory pushback is not enough.

More issues were raised in Ohio as Kalshi faces a fine locally

The company has a point, but the counter-argument remains firm across the nation, with attorneys general and gaming regulators maintaining that Kalshi is de facto offering sports wagering but does not meet the robust regulatory framework set in place. In the meantime, Kalshi wants to secure an injunction that would prevent the state’s AG, Austin Kundsen, as well as other officials, from putting the brakes on Kalshi’s current business model locally. This news comes at the same time that th Ohio Casino Control Commission has slapped Kalshi with a $5,000,000 fine, arguing that the platform had broken local state laws by offering wagering without the proper license.