Kalshi loses appeal in sports contract dispute

A U.S. appeals court has ruled against prediction market Kalshi, allowing Ohio and Tennessee to continue regulating its sportsevent contracts under state gambling laws. The 6th U.S. Circuit Court of Appeals said Kalshi did not show that its contracts should be treated as swaps under the Commodity Futures Trading Commission’s authority. The decision follows a similar ruling from the 9th Circuit and conflicts with an earlier 3rd Circuit decision that had favored Kalshi in New Jersey. The mixed outcomes across federal appeals courts increase the chance that the dispute could reach the Supreme Court. State lawmakers have also asked the court to clarify whether state regulators or federal agencies have jurisdiction over prediction markets.