Another appeals court rules against prediction market provider Kalshi, says sports contracts are subject to state regulations
The Sixth Circuit ruled that Kalshi’s sports-event contracts are not federally regulated swaps, leaving them subject to state gaming laws. The decision came in lawsuits involving Ohio and Tennessee regulators and rejected Kalshi’s effort to block state enforcement, though it affirmed the company could bring its claims. The court said the contracts do not involve events with the financial, economic or commercial consequences required by the relevant statute. The ruling adds to conflicting appeals court decisions: the Third Circuit found the CFTC has jurisdiction over prediction markets, while the Eighth Circuit also ruled sports contracts are not swaps. The split increases the likelihood of Supreme Court review; a related Third Circuit case has already been appealed.
