Kalshi Loses Second Major Court Fight Over Sports Prediction Markets

Kalshi, a platform for sports prediction markets, has suffered another significant legal setback. The 6th U.S. Circuit Court of Appeals ruled unanimously on Friday that Ohio and Tennessee may apply local gambling laws to Kalshi's sports event contracts. This decision marks the industry's second major legal defeat.

The unanimous three-judge panel agreed that states can regulate Kalshi's sports markets, elevating regulatory risk for crypto prediction markets and DeFi betting platforms. This ruling could hinder adoption, token launches, fundraising, and CEX/DEX product rollouts in similar markets.