A Second Federal Appeals Court Rules Sports Event Contracts Are Not Swaps

A federal appeals court has dealt prediction markets another setback, ruling that sports event contracts offered by Kalshi are not federally regulated “swaps” and that states remain free to enforce their gambling laws against the platform. Court of Appeals for the Sixth Circuit ruling Friday (Sept. 25) sided with Ohio and Tennessee, rejecting Kalshi’s argument that its status as a Commodity Futures Trading Commission-regulated exchange shields its event contracts from state ga