The ruling, issued by U.S. District Court Judge Vernon D. Oliver, allows Connecticut authorities to move forward with potential enforcement of state gambling laws against Kalshi. Court Rejects Kalshi’s Federal Law ArgumentsA major issue before the court was whether Kalshi’s sports-related contracts qualify as “swaps” under the Commodity Exchange Act (CEA). Kalshi has consistently argued that its event contracts operate within a federally regulated framework and should therefore be shielded from state gambling regulations. State regulators alleged that the companies were offering sports wagering products without the licenses required under Connecticut law. “It offers consumers the chance to invest in many types of event contracts, including, as relevant here, sports-outcome contracts.