Kalshi Loses Another Appeal, Raising Odds of US Supreme Court Review

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Prediction-market platform Kalshi lost another appeal, increasing the chances that the case will reach the US Supreme Court.

Cointelegraph reported on September 26 that the US Court of Appeals for the Sixth Circuit unanimously dismissed Kalshi’s appeal. The three-judge panel rejected Kalshi’s argument that its sports event contracts qualify as “swaps” under the jurisdiction of the Commodity Futures Trading Commission. It also ruled that Ohio and Tennessee may regulate the contracts under their own gambling laws.

The ruling follows a similar decision by the Ninth Circuit last month. In April, the Third Circuit allowed Kalshi to continue operating in New Jersey while the appeal process moved forward, saying Kalshi’s argument that federal law preempts state regulation was likely to succeed.

With federal appeals courts now split, the odds of Supreme Court review are increasing. Cointelegraph reported that several state lawmakers recently filed briefs urging the justices to intervene in the dispute between Kalshi and state gambling regulators and clarify whether authority to regulate prediction-market companies lies with state agencies or federal regulators.