6th Circuit backs Tennessee & Ohio gambling laws over Kalshi

Kalshi’s sports event contracts can be regulated as gambling under state law, a federal appeals court says.

The hit

The 6th US Circuit Court of Appeals has ruled against Kalshi, backing Tennessee & Ohio’s right to apply state gambling laws to the prediction market platform. The Cincinnati-based court’s three-judge panel issued the decision on 25 September, according to GamblingNews.

Why it matters

The ruling hands states a legal win in the fight over whether sports event contracts count as gambling or federally regulated swaps. It deepens a split across US courts: a Chicago judge recently rejected Illinois’ bid to regulate Kalshi under gaming laws.

The record

Panel finding	Judge Gibbons called the power to define gambling the “very heart of the state’s police power”
Kalshi’s failure	Company did not show its sports event contracts qualify as “swaps” under CFTC rules
Kalshi response	Spokesperson Dani Lever says a “state-by-state patchwork doesn’t work” for markets

What happens next

GamblingNews reports the Cincinnati ruling precedes a more recent Chicago ruling, after which founder Luana Lopes Lara called that decision “beautiful”.

Sources: Tennessee and Ohio Get Favorable Decision Against Kalshi

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