US appeals court rules against Kalshi, says states can regulate prediction markets
The unanimous ruling adds to Kalshi’s legal setbacks as the fight over whether sports-event contracts are swaps heads toward the Supreme Court.
- The Sixth Circuit Court of Appeals ruled Friday that Ohio and Tennessee can regulate Kalshi's sports-related event contracts under state gambling laws, rejecting the platform's claim of exclusive Commodity Futures Trading Commission jurisdiction.
- Kalshi and other prediction market platforms argue their products are financial derivatives called 'swaps' regulated federally, while States contend these offerings amount to gambling subject to local sports betting laws.
- "We hold that Kalshi has not shown that its sports-event contracts satisfy the statutory definition of a 'swap'," the court said, adding the Commodity Exchange Act does not preempt Ohio's or Tennessee's gambling laws.
- This ruling marks the second major Appeals court defeat for the industry; the Third Circuit Court previously sided with federal jurisdiction, creating a circuit split likely to reach the Supreme Court.
- For many States, the core issue involves competition with regulated operators that pay taxes and enforce age limits of 21; the court illustrated complexity by referencing the New York Giants winning a Super Bowl as an 'event' example.
14 Articles
14 Articles
Another appeals court rules against prediction market provider Kalshi, says sports contracts are subject to state regulations
A Sixth Circuit Court of Appeals panel ruled that prediction markets' sports-related events contracts are not swaps, and therefore aren't subject to federal regulatory oversight.
Appeals court rules that states can regulate Kalshi’s sports prediction markets, dealing another legal blow to platforms
The decision is the second in less than a month by an appeals court that states have a role in regulating sports-related event contracts.
Kalshi dealt major blow as appeals court rules states can regulate prediction markets
The 6th US Circuit Court of Appeals said Kalshi has not shown that its sports event contracts are "swaps" that should be regulated by the Commodity Futures Trading Commission.
US appeals court rules against Kalshi, says states can regulate prediction markets
A US appeals court on Friday ruled against the prediction markets operator Kalshi, saying Ohio and Tennessee can regulate its so-called event contracts under their gambling laws.
Kalshi loses again as Sixth Circuit sides with Ohio, Tennessee
The Sixth Circuit Court of Appeals handed Kalshi another major appellate loss on Friday, ruling that the company’s sports event contracts are not swaps under federal commodities law and do not prevent Ohio and Tennessee from enforcing their sports betting laws. In a unanimous opinion combining Kalshi’s cases against Ohio and Tennessee regulators, the court […]
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