The Sixth Circuit ruled on Sept. 25 that Ohio and Tennessee may enforce their gambling laws against Kalshi’s sports contracts, dealing the federally regulated exchange a significant legal setback. Kalshi had argued that following separate state requirements would conflict with its obligations as a federally regulated marketplace. The court rejected that position, indicating that geofencing—restricting access based on a user’s location—could allow Kalshi to comply with state gambling rules while continuing to operate under federal oversight. The decision means Kalshi must prevent users in the two states from accessing the contracts covered by the ruling. CryptoSlate described the judgment as another appellate loss for the prediction-market platform. The case highlights the tension between Kalshi’s federal regulatory status and state efforts to oversee sports-related contracts as gambling activity.
