A plaintiff seeking a preliminary injunction must show that it is likely to succeed on the merits of its case, and judges decided that Kalshi had not done so. The Second Circuit appeals court considered Kalshi’s losses to New York and Connecticut in a single case and upheld the lower-court decisions.

“Appellants have failed to make the required showing that an injunction pending appeal is warranted,” a three-judge panel ruled on Tuesday. The judges also refused to overturn Coinbase’s loss against Connecticut in a case that presented the same legal issues.

Kalshi lost another significant case in September when an appeals court determined that Ohio and Tennessee can enforce their gambling laws against the prediction market. A three-judge panel in the US Court of Appeals for the Sixth Circuit ruled unanimously against Kalshi in that one.

Trump admin on Kalshi’s side

The Trump administration is simultaneously pursuing litigation against states trying to enforce gambling laws against prediction markets.…