Kalshi loses again as judges rule prediction markets must obey gambling laws
Summary
A federal appeals court ruled that states can enforce their gambling laws against Kalshi, a company offering prediction markets for sports betting. The court decided that Kalshi’s sports bets are not “swaps” regulated exclusively by the US Commodity Futures Trading Commission (CFTC), allowing states like Ohio and Tennessee to apply their gambling laws to Kalshi.Key Facts
- The US Court of Appeals for the Sixth Circuit ruled against Kalshi and supported Ohio and Tennessee’s right to enforce gambling laws on Kalshi’s sports betting.
- The court found Kalshi’s bets do not meet the legal definition of "swaps," which are financial contracts regulated by the CFTC.
- Even if Kalshi’s contracts were swaps, the court said Congress did not prevent states from applying their gambling laws.
- Kalshi operates sports betting in states without state gambling licenses and does not pay state gambling taxes.
- The CFTC supports Kalshi and has sued nine states, claiming they interfere with CFTC’s exclusive jurisdiction.
- This ruling is the third federal appeals court decision on Kalshi, with two courts ruling in favor of states and one for Kalshi.
- New Jersey has asked the Supreme Court to decide the issue nationwide.
- The legal focus is whether sports events have enough financial consequences to qualify as swaps under federal law.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.
