US appeals court rules against Kalshi, says states can regulate prediction markets

A US appeals court on Friday ruled against the prediction markets operator Kalshi, saying states can regulate its so-called event contracts under their gambling laws.

The 6th US Circuit Court of Appeals said Kalshi has not shown that its sports event contracts are "swaps" that should be regulated exclusively by the federal Commodity Futures Trading Commission. It also said federal law did not preempt Ohio's or Tennessee's gambling laws.