A federal appeals court has handed Kalshi another legal setback, ruling that Ohio and Tennessee may regulate the company’s sports prediction contracts under state gambling laws. The decision deepens uncertainty around the fast-growing prediction-market sector and raises fresh questions about how far states can go in policing event-based trading products.
The ruling adds to mounting pressure on Kalshi as it seeks to position its contracts as financial instruments rather than wagers, a distinction that has become central to the industry’s regulatory fight.
A federal appeals court has handed Kalshi another legal setback, ruling that Ohio and Tennessee may regulate the company’s sports prediction contracts under state gambling laws. The decision deepens uncertainty around the fast-growing prediction-market sector and raises fresh questions about how far states can go in policing event-based trading products.
The ruling adds to mounting pressure on Kalshi as it seeks to position its contracts as financial instruments rather than wagers, a distinction that has become central to the industry’s regulatory fight.
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Reported by RDU Global Correspondent. Formatted and verified using real-time institutional and journalistic wire feeds. Independent reporting adhering to the RDU Global Editorial Code of Conduct.
