A federal appeals court ruled against prediction market platform Kalshi, finding that states can regulate its sports-related event contracts as gambling. The 6th U.S. Circuit Court of Appeals issued a unanimous decision from a three-judge panel siding with Ohio and Tennessee, according to The Hill.
The court determined that Kalshi did not show its sports-event contracts qualify as "swaps," which would typically fall under federal rather than state oversight, per The Hill. CNBC reported the ruling marks the second time in less than a month that an appeals court has found states have a role in regulating sports-related event contracts.
According to Independent Journal Review, 44 states have argued that the Commodity Futures Trading Commission (CFTC) lacks authority over sports event contracts, and the Sixth Circuit's decision widens a legal split that the outlet said is headed toward the Supreme Court. This claim is reported by a single source among those supplied.
Multiple outlets, including Al Jazeera English, Reuters, CNBC and The Hill, confirmed the core outcome: the appeals court ruled that states, not just federal regulators, can regulate Kalshi's platform.
How each side covered it
Left
- Al Jazeera English reported that the court ruled states can regulate prediction markets, aligning with the ruling's central outcome.
“US court rules against Kalshi, says states can regulate prediction markets” — Al Jazeera English
Center
- The Hill reported the ruling was unanimous and sided with Ohio and Tennessee.
- The Hill noted the court found Kalshi did not show its contracts qualify as "swaps."
- CNBC reported this is the second appeals court ruling in under a month supporting states' regulatory role over sports-related event contracts.
- Reuters confirmed the core finding that states can regulate prediction markets.
“The 6th U.S. Circuit Court of Appeals ruled against the prediction market Kalshi on Friday, determining states can regulate prediction market platforms like gambling in the latest blow to the industry.” — The Hill
Right
- The Epoch Times and Independent Journal Review both reported the Sixth Circuit allowed Ohio and Tennessee to regulate Kalshi as gambling.
- Independent Journal Review reported that 44 states argue the CFTC lacks power over sports event contracts.
- Independent Journal Review framed the ruling as widening a legal split expected to reach the Supreme Court.
“44 states say the CFTC lacks power over sports event contracts; the Sixth Circuit just let Ohio and Tennessee regulate Kalshi as gambling, widening a Supreme Court-bound split.” — Independent Journal Review
Questions readers ask
What happened with Kalshi and the appeals court?
The 6th U.S. Circuit Court of Appeals ruled on Friday that Ohio and Tennessee can regulate Kalshi's sports-event contracts as gambling, according to The Hill. A unanimous three-judge panel found Kalshi did not prove its contracts qualify as federally regulated "swaps."
Why does this ruling matter?
CNBC reported it is the second appeals court ruling in less than a month affirming states have a role in regulating sports-related event contracts, signaling a broader legal trend against prediction market platforms like Kalshi.
What did left-, center- and right-leaning outlets focus on?
Outlets across the spectrum reported the same core outcome that states can regulate Kalshi. Right-leaning Independent Journal Review additionally highlighted a claim that 44 states dispute the CFTC's authority over sports event contracts, framing the ruling as part of a split likely headed to the Supreme Court.
What happens next?
Independent Journal Review reported the legal split is Supreme Court-bound, though the supplied sources do not specify Kalshi's next steps or an appeal timeline.
Sources · 6 outlet reports
- Al Jazeera EnglishLeft-leaningUS court rules against Kalshi, says states can regulate prediction markets
- CNBCCenterAppeals court rules that states can regulate Kalshi’s sports prediction markets, dealing another legal blow to platforms
- ReutersCenterUS appeals court rules against Kalshi, says states can regulate prediction markets
- The HillCenterAppeals court rules against Kalshi, says prediction markets can be regulated like gambling
- Independent Journal ReviewRight-leaningSixth Circuit Allows Ohio, Tennessee to Regulate Kalshi
- The Epoch TimesRight-leaningSixth Circuit Says States May Police Kalshi Sports Contracts as Gambling