Polymarket · The Block
Kalshi drops appeal over Ohio and Tennessee sports betting laws, widening circuit split
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A federal appeals court ruled on Friday that Ohio and Tennessee can enforce their sports gambling laws against Kalshi, rejecting the prediction markets platform's argument that federal commodities law shields its sports event contracts and overrides the authority of the states.
Key facts
- New Jersey Attorney General Jennifer Davenport asked the U.S. Supreme Court on Sept. 2 to review that decision
- Kalshi recorded $38.67 billion in trading volume in August, 's data dashboard
- The Ninth Circuit ruled against Kalshi in a Nevada case on Aug. 28
- Kalshi spokesperson Dani Lever told Courthouse News that the company disagreed with the ruling
Summary
A three-judge panel of the U.S. Court of Appeals for the Sixth Circuit unanimously held that Kalshi has not shown those contracts meet the legal definition of a "swap. The panel also ruled that even if the contracts were swaps, the Commodity Exchange Act would not preempt either state's gambling laws. The court upheld Chief Judge Sarah D. Tennessee's Sports Wagering Council issued its own order in January, naming Polymarket and Crypto.com's Nadex alongside Kalshi.