Utah Court Sets November 20 Hearing in CFTC Challenge to State Prediction Market Enforcement
Judge Shelby expedited the CFTC suit against Utah with a November 20 hearing and tight briefing deadlines starting November 10. Susquehanna argues its liquidity provision is not gambling. Underdog's Missouri filing, its eighth state challenge, asserts federal preemption. (48 words)
SCCG Take — Expedited timelines raise the stakes for states to defend enforcement authority against CFTC-regulated platforms. Operators gain a clearer path if federal preemption holds.
A federal judge in Utah has placed the CFTC's lawsuit on an accelerated track. U.S. District Judge Robert J. Shelby scheduled a November 20 hearing on the agency's request for a temporary restraining order and preliminary injunction blocking state enforcement actions against prediction markets.
Following a November 6 status conference, Shelby established an expedited briefing schedule under which Utah must file its motion to dismiss by November 10 and respond to the CFTC’s request for emergency relief by November 11. Remaining briefs are due between November 16 and November 19. The proceedings follow Utah's October criminal charges against Kalshi and its co-founders.
Susquehanna Argues Market Making Differs from Sportsbook Operations
Susquehanna has filed opposition to Utah's preliminary injunction request in the state's lawsuit against Kalshi and its market makers. The firm maintains that it supplies liquidity by posting orders and trading at prevailing market prices rather than setting odds or accepting customer wagers.
"Unlike the house at a sportsbook, a market maker does not set odds or take bets from customers," the filing states. Susquehanna asserts its operations remain independent of Kalshi's, even as the parties share legal counsel.
Missouri Suit Tests Federal Preemption Limits
Underdog sued Missouri officials on November 8, marking the eighth state where the operator has challenged gambling law enforcement. The complaint targets Attorney General Catherine Hanaway and Missouri Gaming Commission members, seeking to prevent application of state restrictions to its CFTC-regulated derivatives contracts involving NBA expansion, the MLB season, collective bargaining, and a potential NFL team sale.
Missouri issued cease-and-desist orders to Underdog and five other operators in September. According to reporting by Gambling Insider, these parallel actions reflect sharpening tension over whether federal commodities law displaces state gambling authority. The expedited Utah schedule could clarify that boundary sooner than expected, though sustained resistance from multiple states suggests any ruling will face appeals.
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