Kalshi loses appeal, setting up potential Supreme Court case
Summary
Kalshi lost a major appeal after the 6th US Circuit Court of Appeals ruled that Ohio and Tennessee can enforce their state gambling laws against the company’s sports-event contracts. A unanimous three-judge panel said Kalshi did not show those contracts qualify as “swaps” under CFTC jurisdiction. The decision aligns with a similar 9th Circuit ruling and conflicts with an earlier 3rd Circuit decision that had allowed Kalshi to continue operating in New Jersey while its appeal proceeds. The split among circuits increases the chance the US Supreme Court will resolve whether prediction markets are regulated by state gambling authorities or federal agencies.
