Kalshi Loses Sixth Circuit Appeal Over Sports-Event Contracts
The unanimous ruling allows Ohio and Tennessee to regulate Kalshi’s sports contracts under state gambling laws, deepening a federal court split.
Kalshi lost a federal appeals case Friday that could determine whether states or federal regulators control sports-event prediction contracts nationwide.
A unanimous three-judge panel of the Sixth U.S. Circuit Court of Appeals sided with Ohio and Tennessee, allowing the states to regulate Kalshi’s sports-event contracts under their gambling laws. The court found that Kalshi did not demonstrate that the contracts are swaps subject to Commodity Futures Trading Commission jurisdiction.
The ruling adds to a split among federal appeals courts. The Ninth Circuit reached a similar conclusion last month, while the Third Circuit in April allowed Kalshi to operate in New Jersey while its appeal continued after finding that federal law likely overrides the state’s restrictions.
The conflicting decisions increase the possibility that the U.S. Supreme Court will eventually decide whether state gaming authorities or federal agencies have primary jurisdiction over prediction-market companies.
