US appeals court: states can enforce gambling laws against Kalshi

The Sixth Circuit Court of Appeals ruled unanimously that Kalshi's sports contracts are not "swaps" under the Commodity Exchange Act, so Ohio and Tennessee can enforce their gambling laws against the prediction market. It is the third appellate ruling on the issue, giving states two wins to Kalshi's one, with a Fourth Circuit case pending.

• Sixth Circuit: Kalshi sports contracts are not "swaps" under US law
• Court: CEA does not preempt Ohio and Tennessee gambling laws
• Appellate score: states 2, Kalshi 1
• Fourth Circuit case involving Maryland still pending