TLDR Kalshi asked the full Sixth Circuit to reconsider a September 25 ruling that favored sports regulators in Ohio and Tennessee. The panel ruling lets both states enforce their gambling laws against Kalshi’s sports contracts. The CFTC proposed on October 9 to treat event contracts as swaps and separately excluded casino and sportsbook wagers. Courts are split, with the Third Circuit siding with Kalshi and the Ninth Circuit siding with Nevada. Kalshi must respond to New Jersey’s Supreme Court petition by November 9.
Kalshi has asked the full Sixth Circuit Court of Appeals to reconsider a ruling that favored sports regulators in Ohio and Tennessee. The request challenges a September 25 decision that allows those states to enforce their gambling laws against the company.
The petition asks either the original three-judge panel or the full appeals court to take a new look at the case.
What the Sixth Circuit Panel Decided
In its September ruling, the three-judge panel found that Kalshi had not shown its sports contracts qualify as swaps. The judges also found that even if they did, federal commodities law would not override state gambling laws.
As a result, the court upheld Ohio’s denial of an injunction. It also lifted an injunction that had blocked Tennessee regulators from acting against Kalshi.
The Ohio Casino Control Commission banned Kalshi from offering sports contracts in March 2025. Tennessee’s Sports Wagering Council made a similar demand in January 2026.
Kalshi’s lawyers argue that Congress gave the Commodity Futures Trading Commission “exclusive jurisdiction” over contracts traded on designated exchanges. They also say the ruling conflicts with decisions from other federal appeals courts and with earlier Sixth Circuit law.
CFTC Moves on New Prediction Market Rules
On October 9, the CFTC proposed including event contracts in the federal definition of