# Fourth Circuit Kalshi Maryland Preemption Case

**Type:** Legal proceeding  
**Status:** Active (oral argument May 7, 2026)  
**Jurisdiction:** Fourth Circuit Court of Appeals  
**Issue:** Whether CFTC-registered DCMs are preempted from state gambling laws

## Overview

Fourth Circuit appeal of Maryland district court ruling against Kalshi. The district court held (August 2025) that Congress did not clearly intend to displace state gambling authority and that Kalshi could comply with both federal and state law simultaneously—a "compliance coexistence" finding that directly contradicts the Third Circuit's conflict preemption holding.

## Timeline

- **August 2025** — Maryland district court ruled against Kalshi: no clear congressional intent to preempt state gambling authority; compliance with both federal and state law is possible
- **May 7, 2026** — Fourth Circuit oral argument scheduled

## Legal Significance

The Maryland district court's "compliance coexistence" finding creates potential circuit split with Third Circuit's conflict preemption doctrine. If Fourth Circuit affirms, it would establish 2-circuit vs. 1-circuit split (Third Circuit pro-CFTC; Fourth Circuit pro-state; Ninth Circuit likely pro-state).

## Related Cases

- [[third-circuit-kalshiex-flaherty]] — Pro-CFTC preemption precedent
- [[ninth-circuit-kalshi-nevada-consolidated-cases]] — Pending, signaled pro-state
- [[sixth-circuit-kalshi-intra-circuit-split]] — Tennessee vs. Ohio district courts

## Sources

- BettorsInsider circuit-by-circuit analysis, May 5, 2026
- Norton Rose Fulbright prediction markets analysis
- Holland & Knight Third Circuit analysis