
6th Circuit Rules Kalshi Sports Contracts Are Gambling, Not Federal Swaps
A unanimous 6th U.S. Circuit Court of Appeals panel ruled on Friday that Ohio and Tennessee may apply state gambling laws to Kalshi’s sports event contracts. The court rejected Kalshi’s argument that these contracts are federally regulated 'swaps' under the Commodity Futures Trading Commission (CFTC), stating that such instruments are designed for risk hedging, not sports betting. This decision vacates a preliminary injunction in Tennessee and upholds a lower court ruling in Ohio, deepening a split among federal circuits and increasing the likelihood of Supreme Court review.
