Sixth Circuit Allows Ohio, Tennessee to Regulate Kalshi

The Sixth Circuit ruled that Ohio and Tennessee may regulate Kalshi’s sports event contracts under state gambling laws, rejecting the company’s argument that the contracts are swaps subject to the Commodity Futures Trading Commission’s exclusive jurisdiction. The court said Kalshi had not established that its contracts qualify as swaps and that federal law does not preempt the states’ gambling laws. The decision upheld the denial of Kalshi’s request for a preliminary injunction in Ohio and overturned an injunction it had won in Tennessee, allowing state enforcement efforts to proceed.