Appeals court rules that states can regulate Kalshi’s sports prediction markets, dealing another legal blow to platforms
Federal appeals courts are issuing conflicting rulings on whether states can regulate Kalshi's sports prediction markets. Two of three appeals courts have sided with states such as Nevada and Ohio, while the 3rd U.S. Circuit Court of Appeals ruled that the Commodity Exchange Act preempts New Jersey state law. This legal divide leaves sports contracts contested in 21 states as Kalshi continues to defend federal oversight of its event contracts against state gaming regulators.
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- ✓ The 3rd U.S. Circuit Court of Appeals ruled that New Jersey regulators cannot prevent Kalshi users in that state from betting on sporting events.
- ✓ Two of three appeals courts have ruled in favor of state regulation in places like Ohio and Nevada.
- ✓ Sports contracts are currently contested in 21 states.
What changed
Conflicting rulings from three different appeals courts have created a legal split regarding state oversight of sports contracts.
Live updates
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Appeals Courts Split Over State Regulation of Kalshi Sports Markets
Federal appeals courts are issuing conflicting rulings on whether states can regulate Kalshi's sports prediction markets. Two of three appeals courts have sided with states such as Nevada and Ohio, while the 3rd U.S. Circuit Court of Appeals ruled that the Commodity Exchange Act preempts New Jersey state law. This legal divide leaves sports contracts contested in 21 states as Kalshi continues to defend federal oversight of its event contracts against state gaming regulators.
Why it matters
The dispute centers on whether federal law or state gaming regulations govern financial bets on sporting events. A resolution would determine if prediction platforms can operate uniformly across the US or must comply with varying state-level restrictions.
What is confirmed
- The 3rd U.S. Circuit Court of Appeals ruled that New Jersey regulators cannot prevent Kalshi users in that state from betting on sporting events.
- Two of three appeals courts have ruled in favor of state regulation in places like Ohio and Nevada.
- Sports contracts are currently contested in 21 states.
Still unconfirmed
- Kalshi CEO Tarek Mansour warns that state crackdowns could drive prediction market users toward offshore platforms.
What to watch next
- A potential Supreme Court review to resolve the conflict between the different appeals court rulings.
- Further rulings from the remaining contested states regarding the Commodity Exchange Act.
confidence 90%Sources used for this update (4)
- cryptobriefing.com — Kalshi CEO warns state oversight could push prediction markets offshore
- www.oddsshopper.com — Is Kalshi Legal In All States? Two Courts, Two Answers (2026)
- en.cryptonomist.ch — US Prediction Markets Regulation and Kalshi's Federal ...
- talkwinchester.com — New Jersey cannot regulate Kalshi’s prediction market, US ...
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Appellate Court Process Governed by Strict Rules
An appeal functions as a request for a higher court to review a lower court decision rather than operating as a new trial. Deadlines carry high importance, requiring litigants to check specific timelines for their cases. Rules of Appellate Procedure and Rules for Appeal of Decisions of Courts of Limited Jurisdiction govern details of the appellate process across the four levels of court. For limited jurisdiction courts handling misdemeanors, infractions, traffic tickets, and small civil cases, appeals typically go to Superior Court first rather than directly to an appellate court, often involving a new hearing.
Why it matters
Understanding appellate procedure helps clarify how judicial decisions are reviewed and challenged across different court levels. Litigants must master the appeals process by spotting reversible errors and meeting strict legal deadlines to achieve a successful outcome.
What is confirmed
- An appeal is not a new trial, but rather a request for a higher court to review a lower court decision.
- Litigants usually must file a Notice of Appeal within 30 days of a decision from a limited jurisdiction court.
What to watch next
- Monitor specific case deadlines for filing appeals in higher courts.
confidence 90%Sources used for this update (5)
- www.courts.wa.gov — Appeals | Self-Help Washington
- www.washingtonlawhelp.org — Appeals | Washington Law Help
- www.courts.wa.gov — Washington State Courts - Appellate and Trial Courts
- legalterms.net — What Is an Appeal in Court? Definition, Process & Examples
- uslawexplained.com — Appeals: The Ultimate Guide to Challenging a Court Decision
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Appeals court rules states can regulate Kalshi's sports prediction markets
A US appeals court has ruled that states can regulate Kalshi's sports-related event contracts under state gambling statutes. The 6th US Circuit Court of Appeals unanimously held that Kalshi's products are not regulated financial swaps, but rather gambling operations subject to state laws in Ohio and Tennessee. This decision deals another legal blow to the platform.
Why it matters
The ruling deepens a regulatory split on prediction markets in the US. The Commodity Futures Trading Commission (CFTC) has sued nine states over regulation of these markets. The issue may ultimately be decided by the Supreme Court.
What is confirmed
- The 6th US Circuit Court of Appeals unanimously held that Kalshi's products are not regulated financial swaps, but rather gambling operations subject to state laws in Ohio and Tennessee.
- The NFL argues sports prediction contracts are effectively gambling and should be regulated by the states.
- The CFTC has sued nine states as appeals courts split on prediction markets.
What to watch next
- The Supreme Court's decision on a petition related to the regulation of prediction markets
- Further rulings from other US appeals courts on similar cases
- The CFTC's next steps in its lawsuits against the nine states
confidence 90%Sources used for this update (4)
- www.gambling.com — Prediction Markets vs. States: Where Courts Stand Now
- www.cnbc.com — NFL tells Supreme Court prediction markets are gambling and should be regulated by the states
- igamingreview.com — Appeals Court: States Can Regulate Kalshi Prediction Markets
- www.freshfields.com — Two Regulators, One Bet: Sixth Circuit Holds State Regulators ...
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US appeals court rules states can regulate Kalshi's sports prediction markets
A federal appeals court has ruled that states can regulate Kalshi's sports-related event contracts under state gambling statutes, dealing another legal blow to the platform. The 6th US Circuit Court of Appeals unanimously held that Kalshi's products are not regulated financial swaps, but rather gambling operations subject to state laws in Ohio and Tennessee.
Why it matters
This decision deepens a legal split that may eventually move to the Supreme Court, as Kalshi previously argued its products are regulated financial swaps. The ruling allows Ohio and Tennessee to enforce their gambling laws against Kalshi, which has been engaged in a legal battle with the states over the nature of its products.
What is confirmed
- A unanimous 6th US Circuit Court of Appeals panel ruled Kalshi must comply with state gambling regulations in Ohio and Tennessee.
- The 6th Circuit held that Kalshi's sports-event contracts are not federal 'swaps' and that the Commodity Exchange Act does not preempt state gambling laws.
What to watch next
- The possibility of an appeal to the Supreme Court
- The enforcement of state gambling laws against Kalshi in Ohio and Tennessee
- Any potential responses from Kalshi to the appeals court ruling
confidence 100%Sources used for this update (2)
- pro.stateaffairs.com — 6th Circuit Rules Kalshi Subject to Tennessee, Ohio Gambling Laws
- thegistnotes.com — 6th Circuit rules states can apply gambling laws to Kalshi’s ...
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Ohio Governor to Enforce Gambling Laws Following Kalshi Appeals Court Loss
Ohio Governor Mike DeWine announced the state will enforce gambling laws against Kalshi after a federal appeals court ruled its sports-related event contracts are not swaps. This ruling allows Ohio and Tennessee to regulate these platforms under state gambling statutes. The decision follows a legal battle where Kalshi argued its products are regulated financial swaps, while states maintain they are gambling operations. This second federal appeals court setback deepens a legal split that may eventually move to the Supreme Court.
Why it matters
Prediction markets allow users to trade on outcomes of future events, including NFL game winners and Super Bowl futures. Kalshi has lobbied states to avoid gambling regulations by claiming federal oversight of financial swaps.
What is confirmed
- A federal appeals court ruled that sports event contracts offered by Kalshi are not swaps.
- The court decided that Ohio and Tennessee can regulate Kalshi's sports-related event contracts under state gambling laws.
- Governor Mike DeWine stated that prediction markets are illegal gambling and Ohio will enforce state law.
Still unconfirmed
- The legal split regarding prediction markets could eventually reach the Supreme Court.
- Kalshi is lobbying states to prevent the application of gambling regulations.
What to watch next
- Supreme Court petition or ruling on sports event contract classification
- Regulatory actions by other state governments against prediction platforms
confidence 95%Sources used for this update (15)
- www.si.com — Kalshi NFL Prediction Markets 2026: What Can You Trade?
- www.cbssports.com — Pennsylvania Prediction Markets: Legal Status & Where to Trade
- www.pymnts.com — PYMNTS | Kalshi’s Sports Bets Hit Another Legal Wall
- finance.yahoo.com — Kalshi Loses Major Legal Battle as Appeals Court Says Ohio ...
- truthout.org — Kalshi Is Lobbying States to Fight Off Regulations for Prediction Markets
- www.statenews.org — Kalshi is illegal gambling and Ohio will enforce state law following ruling, says DeWine
- selfhelp.courts.ca.gov — How to appeal your case | California Courts | Self Help Guide
- courts.ca.gov — Courts of Appeal | Judicial Branch of California
- cuiab.ca.gov — myappeal | California Unemployment Insurance Appeals Board
- appellate.courts.ca.gov — Home | District Courts of Appeal
- www.cdss.ca.gov — Appeals Case Management System
- en.wikipedia.org — Appeal - Wikipedia
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Appeals Court Rules States Can Regulate Kalshi Sports Markets
A federal appeals court ruled that states retain the authority to regulate Kalshi's sports-related event contracts under state gambling laws. The unanimous decision from the Sixth U.S. Circuit Court of Appeals dealt a significant legal blow to the prediction market platform, siding with officials in Ohio and Tennessee. Judges found that Kalshi failed to prove its sports event contracts qualify as swaps under federal oversight, opening the door for broader state-level regulatory crackdowns.
Why it matters
The ruling marks the second time in less than a month that an appeals court has decided states have a valid role in overseeing sports prediction markets. This decision deepens a division among U.S. circuit courts regarding federal preemption of prediction markets, which observers suggest increases the likelihood that the dispute will ultimately reach the U.S. Supreme Court.
What is confirmed
- The 6th U.S. Circuit Court of Appeals ruled against Kalshi on Friday, determining states can regulate prediction market platforms like gambling.
- A three-judge panel unanimously sided with Ohio and Tennessee, finding Kalshi did not show its sports-event contracts are swaps.
- The decision is the second in less than a month by an appeals court ruling that states have a role in regulating sports-related event contracts.
Still unconfirmed
- Kalshi's defiance of state gambling laws may be headed to the Supreme Court.
What to watch next
- Whether Kalshi files an appeal or petition for review with the U.S. Supreme Court
- Further regulatory actions or enforcement measures by Ohio, Tennessee, and other states against prediction market platforms
confidence 100%Sources used for this update (16)
- www.cbssports.com — Is Kalshi Legal in California? September 2026 Status
- wsj.com — Kalshi’s Embrace of Sports Betting Tests Rules for Prediction Markets
- CNBC — Appeals court rules that states can regulate Kalshi’s sports prediction markets, dealing another legal blow to platforms
- New York Post — Inside Kalshi CEO Tarek Mansour's testy relationship with Indian casinos -- and how it could pose an existential threat: 'Lying little twerp'
- Al Jazeera — US court rules against Kalshi, says states can regulate prediction markets
- nypost.com — Kalshi subject to state gambling laws, appeals court finds — major blow to prediction market giant
- Mashable — Appeals court says Ohio and Tennessee can regulate Kalshi under gambling laws
- 1470 & 100.3 WMBD — US appeals court rules against Kalshi, says states can regulate prediction markets
- Sportico.com — Kalshi Split Widens With 6th Circuit Ruling on Sports Event Contracts
- Cleveland.com — Sixth Circuit rules Ohio can regulate Kalshi sports contracts
- www.cnbc.com — Appeals court rules states can regulate sports prediction markets
- arstechnica.com — Kalshi loses again as judges rule prediction markets must obey gambling laws
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