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6th Circuit Rules States Can Regulate Kalshi Sports Contracts, Deepening Legal Split
The 6th U.S. Circuit Court of Appeals ruled on September 25 that Ohio and Tennessee may apply state gambling laws to Kalshi’s sports-related event contracts. The unanimous decision rejects Kalshi’s argument that such contracts are federally regulated 'swaps' under the Commodity Futures Trading Commission (CFTC). This ruling marks the second major appellate loss for prediction market platforms, following a similar 9th Circuit decision regarding Nevada. The conflicting rulings across circuits have intensified calls for Supreme Court intervention to resolve whether prediction markets are gambling or financial instruments.

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