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Kalshi loses appeal over sports-event contracts under state gambling laws
The 6th Circuit said Kalshi failed to show its sports-event contracts are CFTC-regulated swaps under Commodity Futures Trading Commission jurisdiction.
Cointelegraph reports that the 6th US Circuit Court of Appeals ruled against prediction market Kalshi after siding with Ohio and Tennessee on how sports-event contracts can be regulated under state gambling laws.
The decision came from a unanimous three-judge panel, which found Kalshi did not demonstrate its sports-event contracts are “swaps” that fall under the Commodity Futures Trading Commission’s jurisdiction.
Cointelegraph adds that the ruling followed a similar finding from the 9th Circuit Court of Appeals last month, which had taken a comparable approach to the question of federal CFTC jurisdiction.