California · Polymarket · CryptoSlate
Kalshi must lock out state users after major court loss
Compiled by KHAO Editorial — aggregated from 1 source. See llms.txt for citation guidance.
◌ Single Source
The Sixth Circuit ruled Sept. 25 that Ohio and Tennessee can apply their gambling laws to Kalshi's sports contracts.
Key facts
- EKG counted $31.1 billion in US sports prediction-market execution volume through Sept
- The Sixth Circuit's opinion noted that states collected more than $3.2 billion in sports-gambling tax revenue in fiscal 2025
- Sports carries the business, with more than 90% of Kalshi's trades and 95% of its revenue in 2025 tied to sports contracts, according to figures cited in the Ninth Circuit's August opinion
- Kalshi would then compete with DraftKings, FanDuel and Polymarket on liquidity, pricing and product design, and EKG's projection of $279 billion in 2027 sports prediction-market execution volume
Summary
01 The Sixth Circuit let Ohio and Tennessee enforce gambling laws against Kalshi’s sports contracts. 02 The court found geofencing workable and said compliance costs do not make state restrictions impossible. 03 The ruling threatens a model where 69% of Kalshi’s retail sports demand comes from non-sportsbook states. The court rejected Kalshi's argument that complying state by state would conflict with its duties as a federally regulated exchange, and it pointed to geofencing as a workable way to satisfy both.