Sixth Circuit rules against Kalshi in Ohio & Tennessee

The ruling clashes with a Third Circuit decision letting Kalshi operate in New Jersey, deepening a split New Jersey wants the Supreme Court to settle.

The hit

A Sixth Circuit panel ruled on Friday that Ohio & Tennessee can regulate Kalshi’s sports-event contracts under state gambling law. Judge Julia Smith Gibbons said Kalshi had not shown the contracts are swaps & that federal law does not override state gambling statutes, according to SBC Americas.

Why it matters

The ruling hands states fresh legal cover to treat prediction-market sports contracts as gambling, not federally regulated derivatives. It deepens a split between circuits, with the Eighth & Ninth siding against Kalshi & the Third allowing it to operate in New Jersey. States note federally regulated platforms often admit users at 18 & skip state gambling taxes.

The record

Ruling	Sixth Circuit sides with Ohio & Tennessee against Kalshi (Sep 25, 2026)
Ohio outcome	Denial of Kalshi’s preliminary injunction upheld
Tennessee outcome	Injunction Kalshi previously won there overturned
States in litigation	20 states in active litigation
States opposing CFTC authority	44 states argued against it in a July letter

What happens next

New Jersey has urged the Supreme Court to step in & resolve the circuit split. Watch for a certiorari decision.

Sources: Kalshi loses again as Sixth Circuit sides with Ohio, Tennessee

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