Kalshi Faces Existential Legal Threats as Tribal and State Courts Reject Financial Instrument Defense
Kalshi is facing a multi-front legal crisis after federal appeals courts ruled its sports contracts are gambling, not financial swaps. The Ninth Circuit blocked the platform on three California tribal reservations, while the Sixth Circuit affirmed state gambling laws in Ohio and Tennessee. These rulings contradict a Third Circuit decision favoring Kalshi in New Jersey, setting the stage for a Supreme Court showdown that could define the industry’s future.