GeneralMedium•4 November 2026•
1 min read
Appeals Court Denies Coinbase and Kalshi Injunction in State Gambling Law Dispute
Key Facts
1The Second Circuit Court of Appeals denied a request from Coinbase and Kalshi for an injunction against state gambling laws.
The Second Circuit Court of Appeals denied a request from Coinbase and Kalshi for an injunction against state gambling laws in New York and Connecticut. Benzinga reported that the ruling allows state authorities to continue enforcing regulations against the companies' prediction market contracts, as the court found they failed to demonstrate that a stay was warranted pending appeal.
Coinbase (COIN) shares closed at $145.45 on November 3, 2026, prior to this legal outcome regarding the company's expansion into sports event contracts. While the companies argue these contracts are swaps under federal oversight, state authorities maintain they constitute sports betting subject to local gambling statutes.