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Kalshi has asked the full U.S. Court of Appeals for the Sixth Circuit to rehear a September decision that declined to shield the company’s sports event contracts from gambling regulators in Ohio and Tennessee.
According to Law360, Kalshi argues that recent rule proposals from the U.S. Commodity Futures Trading Commission “substantially undermine” the appeals court’s ruling. The filing puts the case back in focus as a closely watched dispute over whether sports event contracts should be treated primarily as federally regulated derivatives products or as something state gambling authorities can police.
What Kalshi is asking the court to do
The company is seeking full-court, or en banc, review of the September ruling. That earlier decision did not block oversight efforts by the Ohio and Tennessee regulators identified in the case.
The petition, as described by Law360, says newer CFTC rule proposals undercut the basis for the Sixth Circuit’s decision. The source does not detail the exact proposals at issue, but the argument appears central to Kalshi’s request for another look by the full court.
Why the case matters for prediction markets
The dispute sits at the intersection of derivatives regulation and gambling law, which is why it has drawn attention beyond Ohio and Tennessee. How courts and regulators classify sports event contracts could shape the legal path for prediction-market products tied to sporting outcomes.
For readers tracking gambling policy, the immediate takeaway is procedural rather than operational: this is a court fight over regulatory authority, not a new product launch or a change in consumer availability.
What comes next
The next key step is whether the full Sixth Circuit agrees to rehear the case. Law360’s report references Kalshi’s petition, but it does not include a response from Ohio or Tennessee regulators or provide the underlying court’s full reasoning in detail.
That means the most important item to watch is the court’s decision on whether en banc review will be granted.
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Source: As reported by Aislinn Keely.
