The 6th U.S. Circuit Court of Appeals ruled against the prediction market Kalshi on September 25, 2026. The court determined that states have the authority to regulate prediction market platforms similarly to gambling. In a unanimous decision, the three-judge panel supported arguments from Ohio and Tennessee, concluding that Kalshi did not demonstrate that its sports-event contracts qualify as "swaps" under relevant regulations.
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Appeals court rules against Kalshi, allowing states to regulate prediction markets as gambling
The 6th U.S. Circuit Court of Appeals ruled on September 25, 2026, that states can regulate prediction markets like gambling. The unanimous decision favored Ohio and Tennessee's position, stating that Kalshi failed to prove its contracts are classified as "swaps."
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Appeals court rules against Kalshi, says prediction markets can be regulated like gambling
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Appeals court rules against Kalshi, allowing states to regulate prediction markets as gambling