Case 2:26-cv-00151 Document 1 Filed 02/23/26 PageID.26 Page 26 of 27
same putative subject matter. Because federal law occupies the entire field of regulating trading on designated contract markets, Defendants’ threatened actions are both expressly and impliedly field-preempted under the Supremacy Clause. 82. In addition, Defendants’ threatened actions conflict with federal law and policy. Defendants seek to ban event contracts that federal law and the CFTC have authorized (and to subject the website on which such contracts are offered to abatement), which would plainly frustrate the CFTC’s exclusive authority to regulate its designated exchanges. In addition, complying with Defendants’ implicit demand to immediately cease offering event contracts in Utah or face criminal charges could conflict with the federal law governing DCMs, and would thus imperil Kalshi’s CFTC approval. For that reason, the threatened actions are conflict-preempted under the Supremacy Clause. 83. Defendants may not enforce Utah’s anti-gambling laws against Kalshi because Kalshi is a federally regulated exchange that operates under the exclusive oversight of the CFTC and its enabling statute, the CEA, 7 U.S.C. §§ 1 et seq . PRAYER FOR RELIEF WHEREFORE, Plaintiff Kalshi requests that judgment be entered in its favor and against Defendants as follows: 1. Enter a judgment declaring that Utah Code §§ 76-9-1401 et seq. and any other Utah law that is used in a manner to effectively regulate Plaintiff’s designated contract market violates the Supremacy Clause of the United States Constitution as applied to Plaintiff, and a declaratory judgment under 28 U.S.C. §§ 2201-2202 saying the same; 2. Enter both a preliminary and permanent injunction prohibiting Defendants, their officers, agents, servants, employees, and all persons in active concert or participation with them
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