US appeals court rules against Kalshi, says states can regulate prediction markets

The 6th US Circuit Court of Appeals has ruled against Kalshi, determining that states possess the authority to regulate prediction markets. The court stated that Kalshi failed to demonstrate that its sports event contracts qualify as swaps, which would have meant they were regulated exclusively by the Commodity Futures Trading Commission. This judicial decision represents a major blow to Kalshi as it clarifies the regulatory landscape regarding the oversight of prediction markets within the United States.