Finance26 Sep 2026
Appeals Court Deals Blow to Kalshi, Granting States Authority Over Sports Prediction Markets
The Sixth U.S. Circuit Court of Appeals ruled that Ohio and Tennessee can regulate Kalshi sports event contracts under state gambling laws, rejecting arguments that federal commodities statutes preempt state oversight. The unanimous decision represents the second appellate setback for prediction market operators in less than a month and deepens an entrenched federal circuit split. With conflicting appellate precedent spanning the Third, Sixth, and Ninth Circuits, the high-stakes jurisdictional clash between state gaming regulators and prediction platforms now appears destined for the U.S. Supreme Court.
By NeuraFeed