A federal judge has temporarily blocked Connecticut's enforcement of gambling laws against prediction market platform Kalshi and ordered state regulators to hold off on any enforcement action while the court weighs the company's motion for a preliminary injunction. In an order Monday, U.S. District Judge Victor Bolden directed state officials not to take enforcement action against any of the conduct described in the injunction letter until the court rules on Kalshi's motion for a preliminary injunction. The injunction letter, issued last week by the Connecticut Department of Consumer Protection to Kalshi and Crypto.com, demanded they cease what the state regulator called unlicensed online sports betting operations. Kalshi argues that as a CFTC-designated contract marketplace, it enjoys exclusive federal jurisdiction, while Connecticut claims the contracts violate state gambling laws. Oral arguments for the preliminary injunction are scheduled for February 12, 2026.