Another appeals court rules against prediction market provider Kalshi, says sports contracts are subject to state regulations
60-second summary
A Sixth Circuit Court of Appeals panel rules that Kalshi’s sports‑related prediction contracts are not swaps, removing them from federal oversight and placing them under state gambling laws; the decision means Kalshi must seek individual state licenses or cease offering those markets, prompting broader industry pressure to restructure products and assess regulatory compliance risks.
A Sixth Circuit Court of Appeals panel ruled that prediction markets' sports-related events contracts are not swaps, and therefore aren't subject to federal regulatory oversight.