Sixth Circuit rules Kalshi sports contracts face state regulation

A Sixth Circuit appeals panel ruled that Kalshi's sports-related event contracts are not swaps under federal commodities law, making them subject to state gaming regulation rather than CFTC oversight. The decision lets Ohio and Tennessee continue enforcing their sports-betting laws against the prediction-market platform.

• The ruling backs the Eighth Circuit's earlier view and deepens the circuit split — the Third Circuit has found the CFTC does have jurisdiction over such contracts.
• The conflict gives the U.S. Supreme Court more reason to take up the question, which New Jersey has already asked it to do.
• States argue Kalshi's sports markets compete with regulated gambling without paying state taxes.