Sixth Circuit Says States May Police Kalshi Sports Contracts as Gambling
The Sixth Circuit ruled that Ohio and Tennessee can apply state gambling laws to Kalshi's sports-events contracts.Summary
The U.S. Court of Appeals for the Sixth Circuit ruled unanimously on September 25 that Ohio and Tennessee may apply their state gambling laws to Kalshi's sports-events contracts. The panel found that Kalshi failed to demonstrate its contracts meet the federal Commodity Exchange Act's definition of a "swap," placing them outside the exclusive jurisdiction of the U.S. Commodity Futures Trading Commission (CFTC). The court affirmed the Southern District of Ohio's denial of a preliminary injunction blocking Ohio regulators from acting against Kalshi, while vacating the Middle District of Tennessee's injunction that had blocked Tennessee's regulatory action. The ruling aligns the Sixth Circuit with the Ninth Circuit (which allowed Nevada to apply state gambling laws) but conflicts with the Third Circuit's April decision that blocked New Jersey regulators. The issue is now pending before the U.S. Supreme Court, where New Jersey has petitioned to determine whether states retain authority to regulate sports betting on prediction markets.
(Source：The Epoch Times)