Legal conflict over Kalshi's sports betting contracts stories

Sep 25, 2026

Kalshi loses court fight as states win power to regulate sports prediction markets

The 6th US Circuit Court of Appeals ruled on September 25 that states can apply local gambling laws to Kalshi's sports event contracts, rejecting the prediction market provider's argument that federal law preempts state regulation.

Sep 25, 20263 sources

Top claims

▪The 6th U.S. Circuit Court of Appeals ruled that Kalshi's sports contracts do not meet the statutory definition of a swap because sports results are not inherently associated with a financial, economic, or commercial consequence
▪The 6th U.S. Circuit Court of Appeals ruling on Kalshi's sports contracts, issued September 25, 2026, deepens a circuit split, joining the 9th Circuit in siding with states, while the 3rd Circuit previously ruled that the CFTC had jurisdiction
▪The 6th U.S. Circuit Court of Appeals rejected examples of a Spanish soccer club and a bar hedging risks cited by an industry group backing Kalshi, calling them isolated examples that do not establish sports contracts as inherently financial

Subtopics

5th Circuit Court of Appeals1 Crypto prediction markets1 Crypto regulation1 Federal preemption1 State-level AI regulation1

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