Court backs Ohio and Tennessee in Kalshi sports-contract case

The 6th US Circuit Court of Appeals unanimously ruled against Kalshi on Friday. A three-judge panel sided with Ohio and Tennessee on regulating sports-event contracts under state gambling laws. The panel found that Kalshi failed to demonstrate that its contracts were swaps under the jurisdiction of the Commodity Futures Trading Commission. The ruling followed a similar ruling from the 9th Circuit Court of Appeals last month. The 3rd Circuit Court of Appeals ruled in April that Kalshi could do business in New Jersey while its appeal proceeded. That April ruling said Kalshi was likely to succeed with its argument that federal law preempted New Jersey's regulations. A group of state lawmakers filed an amicus brief with the Supreme Court on Wednesday. The brief urged the Supreme Court to consider the dispute between Kalshi and state gaming authorities. The case could resolve whether state authorities or federal agencies have jurisdiction over prediction market companies.