Kalshi loses again as judges rule prediction markets must obey gambling laws
Summary
The Sixth Circuit ruled that states can enforce their gambling laws against Kalshi's prediction markets, overturning a prior Tennessee ruling and aligning with Ohio's stance. The court held that Kalshi's sports-event contracts do not clearly meet the definition of swaps, and that Congress did not expressly preempt state gaming laws, leaving a patchwork of state regulation in place.