Kalshi, a prediction market platform regulated by the Commodity Futures Trading Commission (CFTC), suffered a major legal setback on September 25, 2026 when the US Court of Appeals for the Sixth Circuit ruled in favor of Ohio and Tennessee, allowing these states to enforce their gambling laws against Kalshi’s sports contracts. This decision follows a similar loss for the Ninth Circuit in August involving Nevada, although the Third Circuit ruled in Kalshi’s favor against New Jersey in April. More than 20 states are now involved in litigation over Kalshi’s offerings, creating a conflict between federal appellate courts that could require Supreme Court intervention. The company uses geofencing to restrict access to its sports contracts in states where local gambling laws apply.
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