Appeals Court Rules Ohio, Tennessee Can Regulate Kalshi Under Gambling Laws
Summary
The 6th Circuit unanimously rejected Kalshi's argument that its sports contracts are swaps subject exclusively to CFTC oversight, ruling that Ohio and Tennessee can regulate them under state gambling laws. The court vacated a preliminary injunction against Tennessee and upheld a similar denial in Ohio. This deepens the circuit split, with the 9th Circuit siding with Nevada and the 3rd Circuit ruling opposite in a New Jersey case now before the Supreme Court. Kalshi warns that a state-by-state patchwork makes prediction markets unworkable. The ruling directly threatens Kalshi's sports-related event contracts in those states and increases legal uncertainty across its business.
This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Benzinga.