A new procedural order was entered on September 25, 2026, in the U.S. District Court for the District of Maryland in the case of KalshiEX LLC v. John Martin, case number 1:25-cv-01283-ABA. This development indicates ongoing administrative activity within the district court proceedings, even as the central legal question of federal preemption for prediction markets remains under appellate review.
Check out our Prediction Market Report 2026 here.
Latest Docket Activity
Docket entry 124 in the KalshiEX LLC v. John Martin case signifies a recent procedural step by the U.S. District Court for the District of Maryland. While the specific details of this particular entry are not publicly detailed in the provided snippet, such orders frequently pertain to scheduling adjustments, administrative directives, or minor filings. For instance, it could be an order granting an extension of time for a party to file a document, or a notice regarding case management. These procedural actions are routine in complex litigation and ensure the orderly progression of a case, even when primary issues are being considered by a higher court.
The Maryland Preemption Battle
The underlying dispute in KalshiEX LLC v. John Martin centers on whether the federal Commodity Exchange Act (CEA) preempts Maryland's state gaming laws regarding event contracts. KalshiEX LLC, a CFTC-regulated designated contract market, initiated the lawsuit to challenge the Maryland Lottery and Gaming Control Agency's attempts to regulate its sports-event contracts under state gaming statutes. John Martin, as Director of the Maryland Lottery and Gaming Control Agency, is a key defendant in the case. On August 1, 2025, the U.S. District Court for the District of Maryland, under Judge Adam B. Abelson, denied Kalshi's request for a preliminary injunction. The court concluded that Kalshi had not demonstrated a likelihood of success on the merits of its claim that the CEA preempts Maryland's gaming laws.
Appellate Review Underway
Following the district court's denial of the preliminary injunction, KalshiEX LLC appealed the decision to the U.S. Court of Appeals for the Fourth Circuit. The appeal, docketed as Case No. 25-1892, was filed on August 6, 2025. Oral arguments before the Fourth Circuit were held in May 2026, and the court's decision is currently pending. The state of Maryland has agreed not to enforce its gaming laws against KalshiEX LLC until the appellate court issues its ruling, effectively maintaining the status quo during the appeal process. This appellate review is a critical juncture for KalshiEX LLC and could set an important precedent for the regulatory landscape of prediction markets.
What to Watch Next
The most significant upcoming development in the KalshiEX LLC v. John Martin legal battle will be the decision from the U.S. Court of Appeals for the Fourth Circuit. This ruling will determine the immediate future of Kalshi's ability to offer its event contracts in Maryland without complying with state gaming regulations. Any further activity in the U.S. District Court for the District of Maryland is likely to remain procedural or administrative until the appellate court renders its judgment, which could either affirm the district court's decision or reverse it, potentially sending the case back for further proceedings.
Original announcement: U.S. District Court for the District of Maryland