Tennessee Attorney General Jonathan Skrmetti has asked the Sixth Circuit to reverse a lower-court ruling that allowed Kalshi to offer sports-event contracts in the state. Skrmetti argues the contracts fall under Tennessee’s sports wagering laws; Kalshi says its products are swaps regulated federally by the CFTC.
The appeal will test whether Tennessee’s sports wagering laws apply to Kalshi’s sports-event contracts.
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New Mexico Attorney General Raúl Torrez has sued Kalshi, alleging it offered unlicensed sports wagering in the state. The complaint says Kalshi lacked gaming operator and manufacturer licences and seeks an injunction to stop its sports-related markets; the allegations have not been established by a court.
Kalshi asked the full Sixth Circuit to reconsider its 25 September ruling allowing Ohio and Tennessee to pursue enforcement under state gambling laws. The company argues that federal commodities law gives the CFTC authority over contracts traded on designated exchanges; the court has not accepted that argument.
Crypto.com and Robinhood petitioned the US Supreme Court to review a Ninth Circuit decision upholding the denial of an injunction against Nevada over sports event contracts. Both companies have suspended those contracts for Nevada residents while seeking review. The filing follows Kalshi’s request for an en banc Ninth Circuit hearing in a separate case concerning state regulation of sports event contracts.
Ohio Governor Mike DeWine said the state will enforce gambling laws against Kalshi following a Sixth Circuit ruling. The court unanimously upheld a decision denying Kalshi’s request to block Ohio enforcement, rejecting its argument that federal commodities law shields its sports contracts from state regulation.
Nathan Johnson claimed victory in Texas’s attorney general race, while Tanya Miller was reported to have won in Georgia, potentially changing enforcement prospects for prediction markets. Neither has announced plans to pursue Kalshi; legal expert Daniel Wallach said the results could bring state enforcement back into consideration.
Nathan Johnson, a Democrat, claimed victory in the Texas attorney general race, and Tanya Miller was reported as the Georgia winner and the state's first woman in the post. Their wins might change how prediction markets are policed, although neither has said they plan to go after Kalshi.