Kalshi Loses Appeal Over Ohio and Tennessee Sports Betting Laws

The ruling matters less as a win for Ohio and Tennessee than as a widening of the circuit split over whether event contracts are federal swaps or state gambling. That split is the real pressure point: it leaves the legal classification of prediction markets unsettled across jurisdictions, which shapes where such platforms can operate and how they structure products. Whether other circuits align with this reasoning, and how Kalshi frames its contracts in response, is the open question.