KalshiEX LLC v. Johnson

Overview

Arizona took the most aggressive posture of any state: Attorney General Kris Mayes filed criminal charges against Kalshi (March 2026). Kalshi sued in federal court to block the prosecution and lost its own motion in April 2026. The prosecution was stopped instead on the motion of the United States and the CFTC, before the same judge: Judge Michael Liburdi (D. Ariz.) entered a temporary restraining order in April and a preliminary injunction on May 5, 2026 barring Arizona’s civil and criminal enforcement on preemption grounds, with Crypto.com’s exchange arm participating as an intervenor-plaintiff. It is the first time the federal government, rather than a platform, won injunctive relief against a state in this fight.

Two appeals now run in the Ninth Circuit: Kalshi’s appeal from the denial of its own motion (No. 26-2978), stayed pending the mandate in Assad, and Arizona’s appeal of the May 5 injunction, CFTC v. Johnson (No. 26-4281). The injunction is preliminary, not a final judgment. (Caption confirmed: KalshiEX LLC v. Johnson, D. Ariz. No. 2:26-cv-01715, naming AZ Gaming Director Jackie Johnson, AG Kristin Mayes, and the Arizona Department of Gaming.)

Changes

Logged September 22, 2026

• CorrectionMay 2026

  Our entry credited Kalshi with the Arizona injunction. It was won by the United States and the CFTC on their own motion; Kalshi’s motion was denied in April and is on appeal as No. 26-2978. Corrected from Arizona’s Ninth Circuit status report.

  Arizona status report, No. 26-4281 (9th Cir.)

Timeline

What's next: The preliminary injunction stands. Kalshi’s appeal of the April denial of its own motion (9th Cir. No. 26-2978) remains stayed pending the Assad mandate, which Kalshi’s September 9, 2026 rehearing petition holds back. In Arizona’s own appeal (No. 26-4281) the state moved on September 14 to vacate the injunction as to sports contracts; the CFTC answered that vacatur is premature until Assad is final.

Parties