Appeals Court Rules Against Kalshi

OhioStates can regulate Kalshi’s sports contracts, judges ruled Friday.

It weakens the argument that prediction markets are federally supervised derivatives rather than gambling.

The Sixth Circuit held the contracts are not swaps, so state gaming law applies rather than the Commodity Futures Trading Commission’s rules.

A Tennessee federal court had granted Kalshi an injunction against state suits, while Ohio’s court denied one.

Another appeals-court ruling against Kalshi adds to the case for review by the US Supreme Court.

Sources: CoinDesk