Americans wagered $166.94 billion on legal sports betting in 2025, generating $16.96 billion in revenue and $3.71 billion in state taxes. Kalshi argues that its sports contracts are swaps overseen by the Commodity Futures Trading Commission rather than bets subject to state gaming law. Two federal appeals courts, the Ninth Circuit and the Sixth Circuit, have ruled against Kalshi’s preemption argument, while the Third Circuit previously sided with the company in a case involving New Jersey. The company also faces tribal gaming litigation, including from the Ho-Chunk Nation in Wisconsin, as well as consumer class actions. This circuit split creates uncertainty about Kalshi’s ability to operate depending on which jurisdiction its customers reside in, and could eventually attract Supreme Court review.
Source: Read the original article
