Appeals court says Ohio and Tennessee can regulate Kalshi under gambling laws
The 6th U.S. Circuit Court of Appeals ruled Ohio and Tennessee can apply gambling laws to Kalshi's prediction markets, rejecting its swaps argument.Summary
A three-judge panel of the 6th U.S. Circuit Court of Appeals in Cincinnati ruled that Ohio and Tennessee can apply their gambling laws to Kalshi's event contracts. Kalshi argued its sports contracts are "swaps" under the Commodity Futures Trading Commission's exclusive oversight, but the court rejected that, with Circuit Judge Julia Smith Gibbons writing that swaps are for hedging risk, not gaming, and that regulating gambling is a core state police power. The ruling overturned a preliminary injunction that had barred Tennessee from enforcing its gambling laws against Kalshi and upheld a lower court's refusal to grant a similar injunction in Ohio. Tennessee Attorney General Jonathan Skrmetti called it a "great win" for the state, while Kalshi said it expects the ruling to be overturned. The unanimous decision deepens a split among federal appeals courts over whether states or the CFTC should regulate the fast-growing prediction market industry, making Supreme Court review more likely though not guaranteed, with similar cases pending in Connecticut, New York, Arizona, Minnesota, and other states.
(Source：Google News)