U.S. Appeals Court Rules States Can Regulate Kalshi Sports Betting Contracts

The 6th U.S. Circuit Court of Appeals ruled against Kalshi, allowing Ohio and Tennessee to enforce state gambling laws on the platform's sports-event contracts. The court rejected Kalshi's claim that its products are financial swaps subject solely to CFTC oversight. This decision conflicts with other circuit rulings, intensifying a legal battle over whether prediction market sports contracts are federal derivatives or state-regulated gambling, with the issue likely heading to the U.S. Supreme Court.