Kalshi Hit with Another Legal Blow by Appeals Court

Kalshi suffered another legal setback after an appeals court ruled that Ohio and Tennessee can enforce their sports betting laws against the prediction-market operator.

The Sixth Circuit found that Kalshi's sports event contracts do not qualify as 'swaps' under the Commodity Exchange Act, and any financial effects from sports outcomes are too indirect and speculative to meet the statutory standard.

This decision removes a federal preemption defense and elevates regulatory and legal risk for Kalshi's expansion and broader crypto and DeFi adoption.