US appeals court says states can regulate Kalshi prediction markets
In short
A US appeals court ruled against Kalshi and said states can regulate prediction markets. The court said Kalshi had not proven its sports contracts are swaps covered only by the federal CFTC.
This matters because Ohio and Tennessee gambling laws may still apply. The reporting does not say what Kalshi will do next.
What the reporting says
The 6th US Circuit Court of Appeals ruled against Kalshi and said states can regulate prediction markets. The court said Kalshi had not shown its sports event contracts are swaps overseen exclusively by the federal Commodity Futures Trading Commission, and it said federal law did not preempt Ohio’s or Tennessee’s gambling laws. The ruling may affect Kalshi’s business, but the reporting does not say whether Kalshi will appeal.
Why it matters
The 6th US Circuit Court of Appeals said Kalshi had not shown its sports event contracts are swaps regulated only by the CFTC, and it ruled that federal law did not override Ohio’s or Tennessee’s gambling laws. That decision can limit Kalshi’s legal position in those states and affect prediction-market operators more broadly. The reporting does not say whether Kalshi will appeal or how trading volume could change.