Third Circuit Court OF Appeals

A Sixth Circuit panel ruled that Kalshi’s sports-related event contracts are not federally regulated swaps, placing them within reach of state gaming regulators in Ohio and Tennessee. The decision deepens a growing appellate split over prediction markets and increases the likelihood that the U.S. Supreme Court will take up the issue.

Connecticut has sued Kalshi in a bid to halt the platform’s sports event contracts in the state, intensifying a broader legal clash over prediction markets. With state and federal courts issuing mixed decisions, the fight is increasingly framed as one that could eventually reach the U.S. Supreme Court.