Kalshi subject to state gambling laws, appeals court finds — major blow to prediction market giant

Source: New York Post

A US appeals court ruled Friday that Ohio and Tennessee can regulate Kalshi’s so-called event contracts under gambling laws, dealing the prediction market giant one of its biggest legal blows yet. The ruling by the ​6th US Circuit Court of Appeals – which focused on sports bets, Kalshi’s main cash cow – said ​the company has failed to demonstrate that its ‌event ⁠contracts are “swaps” that should be regulated exclusively by ​the ​federal ⁠Commodity Futures Trading Commission.   The question of whether state law applies to Kalshi and other prediction market operators has been a hotly contested issue, with the companies enjoying a light regulatory touch from the CFTC to date.