Kalshi suffered yet another legal defeat Friday, as the U.S. Court of Appeals for the Sixth Circuit became the second federal appellate court to rule that states can apply their gambling laws to sports event contracts.
The Sixth Circuit comprehensively rejected Kalshi’s arguments. In a 3-0 opinion, it determined that Kalshi’s sports contracts did not meet the definition of a swap, and even if they did, the CEA did not preempt state gambling laws.