Federal court rules Kalshi is subject to Tennessee's gambling laws for sports contracts
A federal appeals court ruled Kalshi's sports contracts are subject to Tennessee gambling laws, reversing a lower court decision.Summary
The U.S. Court of Appeals for the 6th Circuit ruled that prediction market Kalshi's sports-event contracts are subject to Tennessee's sports-wagering laws, reversing a lower-court ruling. A three-judge panel determined that sports-event contracts on platforms like Kalshi and Polymarket are essentially the same as placing legal sports bets. Kalshi began offering sports-event contracts in Tennessee in 2025 without registering with the state's sports wagering council, claiming its contracts were "swaps" under the exclusive jurisdiction of the U.S. Commodity Futures Trading Commission, which also allowed the company to avoid paying Tennessee's sports wagering taxes and licensing fees. Senior Circuit Judge Julia Gibbons ruled that these contracts do not meet the definition of a swap, as they have only downstream economic consequences and are not directly associated with financial or commercial instruments. The ruling is narrowly tailored to sports betting, allowing Kalshi to continue offering other event contracts in Tennessee. Approximately 90% of bets placed on Kalshi are sports bets, according to the Financial Times.
(Source：Greenevillesun)