By SectorWire desk ·
A federal appeals decision favours Ohio and Tennessee in their efforts to oversee sports prediction market apps on 28 September 2026. The report identifies the Sixth Circuit as the court behind the ruling.
The decision supports Ohio and Tennessee’s efforts to apply state oversight to sports prediction market apps.
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The dispute concerns whether states can apply gambling rules to sports-event contracts offered by federally regulated exchanges.
The findings bear on state challenges to Kalshi and Polymarket's position that their contracts fall exclusively under CFTC jurisdiction.
The analysis questions Kalshi’s explanation for concentrated activity in its ether perpetual contracts.
The new contracts allow partial settlement rather than requiring players to reach the full statistical target.
The dispute could affect whether prediction market operators face state gambling laws alongside federal oversight.
The denial challenges Kalshi’s account of a tribal partnership.