US appeals court rules Kalshi's sports contracts are not swaps, letting states regulate them

A US appeals court ruled against prediction market operator Kalshi, finding its sports contracts are not "swaps" subject only to CFTC regulation. The decision allows states to regulate the contracts under gambling laws.

• Court: Kalshi sports contracts are not "swaps"
• CFTC regulation is no longer exclusive
• States can apply gambling laws to Kalshi