By SectorWire desk ·
The Sixth Circuit ruled against Kalshi on Friday. The decision allows Ohio and Tennessee to apply their sports betting laws to the prediction market operator.
Kalshi faces application of Ohio and Tennessee sports betting laws following the Sixth Circuit's ruling against it.
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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.