A federal judge denied Kalshi's preliminary injunction on August 27, 2026 — the 4th state in a documented enforcement pattern. Here is what the ruling means, what comes next, and what Montana traders should know.
Updated August 28, 2026
Access Status — Confirm Before Trading
Kalshi's prediction market app may currently be accessible in Montana, but a federal court ruling on August 27, 2026 has advanced the legal process. Access can change without notice. Confirm current availability at kalshi.com before placing any trades.
April 12, 2026: Kalshi filed a federal complaint in the District of Montana against Attorney General Austin Knudsen, arguing that Montana's gambling enforcement is preempted by the Commodity Exchange Act.
Three stays agreed: Both Kalshi and Montana agreed three times to stay all litigation deadlines, with no substantive explanation provided for the final extension request on August 21, 2026.
August 27, 2026: Judge Donald W. Molloy denied both the third joint stay request and Kalshi's pending motion for a preliminary injunction, citing Kalshi's failure to demonstrate irreparable harm.
Next step: AG Austin Knudsen must answer or respond to Kalshi's federal complaint by approximately September 17, 2026. The court noted no further time extensions will be granted.
Montana is the fourth state where a federal court has denied Kalshi's request for a preliminary injunction against state enforcement. In all four cases, the same legal sequence has played out: Kalshi sued in federal court, sought emergency relief, and was denied — leaving state attorneys general free to escalate to their own courts.
| State | Case | PI Ruling | Date | Next Step | Status |
|---|---|---|---|---|---|
| Ohio | Kalshi v. Yost | Denied | Mar 9, 2026 | 6th Circuit appeal pending | Restricted |
| Connecticut | Kalshi v. CT DCP | Denied | Aug 10, 2026 | CT AG state civil suit filed | Proceeding |
| New York | Kalshi v. Williams | Denied | Jul 13, 2026 | SDNY — Aug 31 response | Active |
| Montana | Kalshi v. Knudsen | Denied | Aug 27, 2026 | State answer ~Sept 17 | Pending |
Court filings are public records. Sources: CourtListener (D. Montana, S.D.N.Y., D. Conn., S.D. Ohio).
To win a preliminary injunction, the requesting party must satisfy four requirements under the Supreme Court's Winter v. Natural Resources Defense Council standard. Failing any one requirement ends the analysis. Judge Molloy focused on the second: irreparable harm.
1. Likely to succeed on the merits
Not reached
2. Likely to suffer irreparable harm
Failed — delays undermined urgency
3. Balance of equities favors injunction
Not reached
4. Injunction serves public interest
Not reached
Irreparable harm means harm that cannot be compensated after the fact — harm so urgent that waiting for a full trial would cause permanent damage. By agreeing three times to stay the case for months, Kalshi inadvertently signaled that the situation was not that urgent. Courts use a party's own conduct as evidence of how serious it believes the threat to be.
The PI was denied without prejudice, meaning Kalshi can seek emergency relief again if new facts change the calculus — for example, if Montana initiates active enforcement proceedings.
AG Knudsen answers the federal complaint (~Sept 17)
The federal case proceeds on the merits — whether the Commodity Exchange Act preempts Montana gambling law. This is now the primary track. No time extensions will be granted.
Montana files a parallel state court lawsuit (the CT/NY model)
Connecticut and New York both filed state court suits after similar federal PI denials. Montana could follow. A state court injunction could result in a geofence — but this step has not occurred as of August 28, 2026.
Settlement or consent order
Kalshi has not settled any active state enforcement matter as of this writing. A settlement remains possible but is not indicated by current filings.
Current Kalshi access status in Montana has not been independently verified. No geofence or account restriction has been announced as of August 28, 2026.
Confirm before trading: kalshi.com/help
KalshiEX LLC v. Knudsen
Case No. 6:26-cv-00028 · U.S. District Court, District of Montana (Helena Division)
Judge Donald W. Molloy · PI denied without prejudice, August 27, 2026
Press coverage was used for lead-finding only. All factual claims on this page are sourced from the public court record.
