Ohio fights Kalshi appeal over sports contracts and gambling authority
Ohio is opposing Kalshi's appeal, arguing its sports contracts circumvent state gambling rules and lack legal justification.Summary
Ohio is actively contesting Kalshi’s appeal to continue offering sports-related contracts, asserting that the company is attempting to bypass state gambling regulations. State officials argue that Kalshi’s claim that federal law preempts Ohio’s authority is a misinterpretation of the Commodity Exchange Act, stating that Congress did not intend such a significant shift in power. They emphasize that sports wagers differ from financial swaps, lacking a direct economic consequence. The dispute began when Kalshi launched these contracts in early 2025, leading to a lawsuit with a federal judge initially siding with Ohio. A coalition of 30 tribal groups supports Ohio’s position, fearing the impact on existing gaming regulations. Ohio also highlights potential risks to consumer protection if Kalshi is allowed to operate without standard oversight. Kalshi maintains it faces harm from conflicting regulations, but Ohio argues it can comply by suspending operations where necessary.
(Source：Readwrite)