US Appeals Court Rules Kalshi Sports Contracts Subject to State Gambling Law

The ruling cuts against the CFTC's claim to exclusive authority over event contracts, handing states a path to regulate prediction markets under gambling law. That matters most for platforms whose sports books sit outside traditional derivatives oversight, and for the state regulators now testing their reach. The split outcome between Ohio and Tennessee — one denying, one granting injunctive relief — signals the question is far from settled, and whether other circuits follow the Sixth is the open question.