Sixth Circuit Lets Ohio, Tennessee Regulate Kalshi Sports Contracts

The Sixth Circuit ruled that Ohio and Tennessee can regulate Kalshi’s sports event contracts under state gambling laws, increasing the likelihood that the dispute will reach the U.S. Supreme Court.

A three-judge panel also found that Kalshi had not established that its contracts are swaps subject to the jurisdiction of the Commodity Futures Trading Commission. The decision gives states a stronger basis to oversee the prediction-market platform’s sports products.

The ruling adds to a split among federal appeals courts. The Ninth Circuit reached a similar conclusion last month, while the Third Circuit ruled in April that Kalshi could continue operating in New Jersey while its case proceeded.

State lawmakers have filed friend-of-the-court briefs asking the Supreme Court to clarify how authority over prediction markets is divided between state governments and federal agencies. The conflicting appellate decisions provide the basis for possible Supreme Court review.