# Sixth Circuit Says Kalshi Sports Contracts Face State Gambling Oversight

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/24273
Published: 2026-09-25T21:24:01.000Z
Updated: 2026-09-25T21:24:01.000Z
Section: Regulation

> The ruling says the contracts are not swaps subject to Commodity Futures Trading Commission rules, affecting disputes in Ohio and Tennessee.

A Sixth Circuit panel ruled Friday that Kalshi’s sports-event contracts fall under state gambling oversight, limiting the platform’s argument that federal derivatives rules should control the disputes.

The panel determined that the contracts are not swaps. That means state gambling regulators, rather than Commodity Futures Trading Commission rules, govern the contracts at issue in the ruling.

The decision involves separate lawsuits Kalshi brought against regulators in Ohio and Tennessee. Kalshi sought injunctions to stop both states from pursuing litigation against the prediction-market platform.

An Ohio federal court rejected Kalshi’s request, while a Tennessee federal court granted it. The appeals ruling addresses the regulatory question at the center of those cases and could shape how states oversee sports-event contracts offered by prediction markets.

The decision leaves Kalshi facing state-level gambling oversight in the Sixth Circuit’s jurisdiction as the related litigation proceeds.