US appeals court rules against Kalshi, says states can regulate prediction markets
- 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.
26 Articles
26 Articles
STOCK MARKET: Appeals court rules states can regulate sports prediction markets
The 6th U.S. Circuit Court of Appeals ruled on Friday that states have a right to regulate sports-related event contracts on prediction market platforms, marking a second major legal defeat for the industry as a fight at the U.S. Supreme Court looms. In a unanimous decision, the three judge panel said that Ohio and Tennessee are permitted to apply their state gambling laws to Kalshi’s sports-related event contracts. “We hold that Kalshi has no…
Sixth Circuit Allows Ohio, Tennessee to Regulate Kalshi
The Sixth Circuit ruled that Ohio and Tennessee can enforce their gambling laws against Kalshi’s sports event contracts, rejecting the company’s argument that the contracts are swaps subject to exclusive federal regulation. The decision affirmed the denial of an injunction in Ohio and overturned one granted in Tennessee. · 16 sources across the spectrum on IJR News.
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.
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