Appeals court says Ohio and Tennessee can regulate Kalshi under gambling laws
Kalshi has petitioned the U.S. Sixth Circuit Court of Appeals for an en banc hearing following a panel decision that allows Ohio and Tennessee to regulate the platform under state gambling laws. The request, filed October 13, seeks a full court review of the ruling. This legal challenge coincides with CFTC proposals to redefine swaps, a move that could strengthen Kalshi's argument against state jurisdiction. Meanwhile, other prediction market operators including Crypto.com and Novig are pursuing similar federal shield arguments in Missouri courts.
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- ✓ Kalshi requested an en banc hearing from the Sixth Circuit Court of Appeals regarding lawsuits against officials in Ohio and Tennessee.
- ✓ The petition for full court review was submitted on October 13.
- ✓ Two of three appeals courts have sided with states such as Ohio and Nevada regarding the legality of sports contracts.
What changed
Kalshi filed a petition for an en banc hearing with the Sixth Circuit Court of Appeals on October 13.
Live updates
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Kalshi requests full Sixth Circuit review of Ohio and Tennessee gambling rulings
Kalshi has petitioned the U.S. Sixth Circuit Court of Appeals for an en banc hearing following a panel decision that allows Ohio and Tennessee to regulate the platform under state gambling laws. The request, filed October 13, seeks a full court review of the ruling. This legal challenge coincides with CFTC proposals to redefine swaps, a move that could strengthen Kalshi's argument against state jurisdiction. Meanwhile, other prediction market operators including Crypto.com and Novig are pursuing similar federal shield arguments in Missouri courts.
Why it matters
Prediction markets are currently fighting a legal battle over whether federal oversight preempts state-level gambling prohibitions. This conflict centers on whether event contracts constitute swaps or traditional gambling. Two of three appeals courts have already sided with state regulators.
What is confirmed
- Kalshi requested an en banc hearing from the Sixth Circuit Court of Appeals regarding lawsuits against officials in Ohio and Tennessee.
- The petition for full court review was submitted on October 13.
- Two of three appeals courts have sided with states such as Ohio and Nevada regarding the legality of sports contracts.
Still unconfirmed
- Sports contracts are contested in 21 states.
- Crypto.com and Novig sued Missouri on October 16 claiming federal law shields their sports event contracts.
What to watch next
- The Sixth Circuit Court of Appeals decision on whether to grant the en banc hearing.
- The finalization of CFTC proposals regarding the definition of swaps.
- The outcome of the Missouri lawsuit involving Crypto.com and Novig.
confidence 90%Sources used for this update (6)
- www.oddsshopper.com — Is Kalshi Legal In All States? Two Courts, Two Answers (2026)
- rg.org — Crypto.com, Novig Sue Missouri Over Prediction Market Crackdown
- mashable.com — UC Berkeley’s new Twitch studio gives student-athletes a place to build their audiences
- defirate.com — Kalshi Asks Full Sixth Circuit to Review Panel Decision
- pro.stateaffairs.com — Kalshi files for rehearing as CFTC moves to redefine swaps
- www.gate.com — Kalshi Requests Full Court Review of Ohio and Tennessee ...
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CFTC Proposes Rules to Separate Prediction Markets from Gambling
The Commodity Futures Trading Commission issued two regulatory proposals aimed at separating prediction markets from casino gambling. One measure defines event contracts as swaps under federal law, while the other excludes traditional casino gambling from that definition. These actions set the stage for a potential United States Supreme Court battle regarding federal and state jurisdiction over prediction market operators. The federal regulatory push runs parallel to state-level efforts, as an appeals court previously allowed Ohio and Tennessee to enforce local gambling laws against operators like Kalshi despite federal oversight arguments.
Why it matters
State authorities and federal regulators are locked in a jurisdictional dispute over sports-related event contracts. The Commodity Futures Trading Commission initiatives attempt to establish clear definitions for swaps versus casino gambling. Major sports leagues and numerous states remain heavily involved in the ongoing legal battles.
What is confirmed
- The Commodity Futures Trading Commission issued two proposals to separate prediction markets from casino gambling.
- One Commodity Futures Trading Commission proposal defines event contracts as swaps under federal law.
- The second Commodity Futures Trading Commission proposal excludes traditional casino gambling from the definition of swaps.
What to watch next
- Decisions by the U.S. Court of Appeals for the Sixth Circuit regarding Kalshi's request for a rehearing.
- Potential escalation of the jurisdiction dispute to the United States Supreme Court.
confidence 100%Sources used for this update (5)
- www.si.com — Best Betting Sites for Oct. 2026: Expert Tested and Ranked
- www.goal.com — Anfield opens the gates of hell: will Manchester City's victories become worthless? | Goal.com South Africa
- cointelegraph.com — CFTC aims to differentiate swaps from gambling
- www.law360.com — Native American : Law360 UK : Legal News & Analysis
- www.saturdaydownsouth.com — Best Florida Sports Betting Apps in 2026: Hard Rock Bet Promo
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Kalshi Asks Full Sixth Circuit to Rehear Sports Contract Ruling
Prediction market operator Kalshi is asking the full U.S. Court of Appeals for the Sixth Circuit to rehear a September 25 ruling that allows Ohio and Tennessee to enforce state gambling laws against its sports event contracts. The initial appeals court decision rejected Kalshi arguments that its platform operates under federal supervision by the Commodity Futures Trading Commission. This legal battle intensifies a wider national dispute over whether federal regulators or state authorities hold the power to oversee sports-related prediction market contracts, drawing involvement from major sports leagues and dozens of states.
Why it matters
The ongoing legal battle centers on whether sports event contracts offered by online prediction markets constitute federally regulated swaps or illegal state-level gambling. The recent Sixth Circuit outcome created a legal split over regulatory authority. Meanwhile, the National Football League backed New Jersey officials in requesting U.S. Supreme Court review over betting oversight, arguing that federal commodities regulators may lack the resources to adequately police sports betting.
What is confirmed
- Kalshi is asking the full U.S. Court of Appeals for the Sixth Circuit to rehear the September 25 ruling regarding its sports contracts.
- The Sixth Circuit previously ruled that Ohio and Tennessee can regulate Kalshi event contracts under state gambling laws.
- The National Football League backed a request for U.S. Supreme Court review of a dispute over whether federal regulators or states should oversee sports-related prediction market contracts.
- The NFL argued that the Commodity Futures Trading Commission may lack the resources to adequately police sports betting.
- Ohio Governor Mike DeWine previously stated that prediction markets are illegal gambling and promised state enforcement.
Still unconfirmed
- Kalshi seeks Sixth Circuit review of the sports betting ruling to overturn the restriction on its platform.
What to watch next
- Whether the full U.S. Court of Appeals for the Sixth Circuit agrees to rehear Kalshi's sports contract case.
- Any potential U.S. Supreme Court action regarding the broader betting oversight dispute backed by the NFL and New Jersey officials.
confidence 95%Sources used for this update (12)
- www.goal.com — Kalshi Promo Code: GOAL - Trade $25, Get up to $2000 in September 2026
- www.cdc.gov — This is a TEST | State and Local Readiness | CDC
- www.cdc.gov — Think. Test. Treat TB | Think. Test. Treat TB. | CDC
- igamingreview.com — Appeals Court: States Can Regulate Kalshi Prediction Markets
- www.gamblingnews.com — Tennessee and Ohio Get Favorable Decision Against Kalshi
- www.newsweek.com — Map Shows 40 States Backing NFL’s Supreme Court Prediction Market Fight
- www.thestar.com.my — NFL backs Supreme Court review in betting oversight case - The Star ,Malaysia News
- natlawreview.com — Sixth Circuit Deepens Circuit Split: Kalshi Sports-Event Contracts Are Not “Swaps,” and the CEA Does ....
- www.law360.com — Tax : Law360 : Legal News & Analysis
- readwrite.com — Sixth Circuit Opens Kalshi Contracts to State Gambling Laws - ReadWrite
- www.econotimes.com — Kalshi Seeks Sixth Circuit Review of Sports Betting Ruling
- www.altcoinbuzz.io — Kalshi Asks Full Sixth Circuit to Rehear Sports Contract Ruling
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Federal Appeals Court Rules States Can Regulate Kalshi Under Gambling Laws
A federal appeals court panel determined that prediction market operator Kalshi must obey state gambling statutes in Ohio and Tennessee. The 6th US Circuit Court of Appeals turned down Kalshi arguments that its sports event contracts count as federally regulated swaps supervised by the Commodity Futures Trading Commission. Ohio Governor Mike DeWine stated the prediction markets are illegal gambling and promised state enforcement. The decision also removed an order that previously stopped Tennessee from enforcing local laws against the unlicensed online operator.
Why it matters
Prediction markets face escalating legal and regulatory battles across the United States as states attempt to curb unlicensed online operators. While the Commodity Futures Trading Commission submitted two rules to the White House to classify event contracts as swaps, state regulators continue asserting authority over sports-based offerings.
What is confirmed
- A unanimous federal appeals court panel ruled that prediction market operator Kalshi must comply with state gambling laws in Ohio and Tennessee.
- The 6th US Circuit Court of Appeals rejected Kalshi arguments that its sports event contracts qualify as federally regulated swaps under the Commodity Futures Trading Commission.
- Ohio Governor Mike DeWine declared the prediction markets illegal gambling and vowed state enforcement.
- The US Commodity Futures Trading Commission sent the White House two rules that would define prediction-market event contracts as swaps.
Still unconfirmed
- A leader of The Church of Jesus Christ of Latter-day Saints stated that an explosion in online prediction markets and sports betting is fostering greed among young people.
What to watch next
- White House action on the Commodity Futures Trading Commission rules defining event contracts as swaps
- Further state-level enforcement actions by Ohio and Tennessee against prediction market operators
- Potential appeals to the US Supreme Court regarding prediction market jurisdiction
confidence 100%Sources used for this update (5)
- www.goal.com — Best Prediction Markets Apps in US Ranked September 2026
- www.bankless.com — ROLLUP: UptoberGreen Light? | Robinhood Goes All-In | $400M Bitget Hack | Prediction Markets to SCOTUS | ....
- www.wlwt.com — Mormon leader decries explosion in sports betting, prediction markets - WLWT
- coinpaprika.com — CFTC Moves to Put Event Contracts Beyond State Gambling Rules - CoinPaprika
- coinstats.app — Is Polymarket Legal in Michigan? October 2026
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Appeals Court Rules Ohio and Tennessee Can Regulate Kalshi
A unanimous federal appeals court panel ruled that prediction market operator Kalshi must comply with state gambling laws in Ohio and Tennessee. The 6th US Circuit Court of Appeals rejected Kalshi's arguments that its sports event contracts qualify as federally regulated swaps under the Commodity Futures Trading Commission. Following the decision, Ohio Governor Mike DeWine declared the prediction markets illegal gambling and vowed state enforcement. The ruling also lifted an order that previously blocked Tennessee from enforcing its local laws against the unlicensed online operator.
Why it matters
The dispute centers on whether federal commodities law preempts state authority over online prediction markets. Kalshi offers sports bets without a state license, prompting regulatory pushback from local authorities. This appeals court decision deepens a legal split across circuits and increases the likelihood of a future Supreme Court review.
What is confirmed
- The 6th US Circuit Court of Appeals ruled that Ohio and Tennessee can regulate Kalshi sports event contracts under state gambling laws.
- Ohio Governor Mike DeWine stated that Kalshi prediction markets are illegal gambling and vowed to enforce state law.
- The court rejected Kalshi's claim that its sports event contracts are swaps regulated exclusively by the Commodity Futures Trading Commission.
- The ruling lifted an order that previously blocked Tennessee from enforcing its laws against Kalshi.
Still unconfirmed
- The Supreme Court will grant review to resolve the circuit split regarding federal preemption of prediction markets.
What to watch next
- Whether the Supreme Court chooses to grant review on the prediction market petitions.
- Further enforcement actions by Ohio and Tennessee officials against Kalshi.
confidence 100%Sources used for this update (13)
- economictimes.indiatimes.com — US appeals court rules against Kalshi, says states can regulate prediction markets
- www.law.com — 6th Circuit Says States Can Regulate Kalshi Sports Contracts as Gambling
- cointelegraph.com — Kalshi loses appeal in court
- www.statenews.org — Kalshi is illegal gambling and Ohio will enforce state law following ruling, says DeWine
- cointelegraph.com — THORChain Under Fire Over Bitget, ETH Evolves Beyond Blockchain: Hodler’s Digest
- www.tn.gov — Tennessee Wins Appeal in Major Sports Betting Fight with Kalshi
- www.bettingnews.com — Sixth Circuit Rules Against Kalshi in Ohio, Tennessee
- www.thelines.com — Kalshi Loses Prediction Markets Case Against Ohio, Tennessee
- rg.org — No Prediction Market Cases on Supreme Court's First Docket of Term
- pro.stateaffairs.com — 6th Circuit Rules Kalshi Subject to Tennessee, Ohio Gambling Laws
- wowo.com — Ohio Gov. Mike DeWine Vows Enforcement Against Kalshi After ...
- rg.org — Ohio Gov. DeWine Calls Kalshi Sports Contracts Illegal Gambling
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Appeals court: Ohio, Tennessee can regulate Kalshi under gambling laws
A US appeals court ruled that Ohio and Tennessee can regulate Kalshi's event contracts under their gambling laws, dealing a significant blow to the prediction market operator. The 6th US Circuit Court of Appeals decision deepens a split that may reach the Supreme Court. Kalshi's sports contracts are now subject to state gambling regulations.
Why it matters
The ruling marks a major development in the ongoing debate over the regulation of prediction markets in the US. Kalshi has been operating in a regulatory gray area, and the court's decision may force the company to reevaluate its business model. The case may ultimately be decided by the Supreme Court.
What is confirmed
- The 6th US Circuit Court of Appeals ruled that Ohio and Tennessee can regulate Kalshi's event contracts under their gambling laws.
- Kalshi's sports contracts are subject to state gambling regulations.
- The decision deepens a split that may reach the Supreme Court.
What to watch next
- The potential appeal of the 6th US Circuit Court of Appeals decision to the Supreme Court
- The impact of the ruling on Kalshi's business operations and future growth
- Further regulatory actions by other states against Kalshi or similar prediction market operators
confidence 100%Sources used for this update (17)
- 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
- Reuters — US appeals court rules against Kalshi, says states can regulate prediction markets
- Al Jazeera — US court rules against Kalshi, says states can regulate prediction markets
- thehill.com — Appeals court rules against Kalshi, says prediction markets can be regulated like gambling
- nypost.com — Kalshi subject to state gambling laws, appeals court finds — major blow to prediction market giant
- www.unionleader.com — Appeals court rules against Kalshi, says states can regulate prediction markets
- Mashable — Appeals court says Ohio and Tennessee can regulate Kalshi under gambling laws
- Sportico.com — Kalshi Split Widens With 6th Circuit Ruling on Sports Event Contracts
- Cleveland.com — Sixth Circuit rules Ohio can regulate Kalshi sports contracts
- WKRN News 2 — US appeals court finds Kalshi subject to Tennessee’s gambling laws
- arstechnica.com — Kalshi loses again as judges rule prediction markets must obey gambling laws
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