The Second Circuit has refused to shield Kalshi and Coinbase from New York and Connecticut while their appeals proceed. The ruling lets both states press state-court cases against the companies' sports event contracts and deepens a circuit split headed for the Supreme Court.

A federal appeals panel has left Kalshi and Coinbase without interim protection in two Northeastern states. The Second Circuit found that the companies had not made the showing needed for an injunction pending appeal. The order did not say which part of that showing they failed to meet.

The ruling came a few hours after the panel heard lawyers for Kalshi, Coinbase, the CFTC, New York and Connecticut. The court took up Kalshi’s two appeals together with Coinbase’s appeal of Judge Oliver’s August decision.…