Kalshi loses appeal, potential Supreme Court case looms

VERA Brief

AI-generated. Grounded in the article and its cited sources.

The 6th US Circuit Court of Appeals ruled against Kalshi, affirming Ohio and Tennessee's authority to regulate sports-event contracts under state securities laws. The court found these contracts could be viewed as securities, potentially leading to future legal challenges.

Key facts

• The 6th US Circuit Court of Appeals ruled against prediction market Kalshi.
• The court affirmed Ohio and Tennessee's authority to regulate sports-event contracts under state securities laws.
• The ruling found that Kalshi's contracts could be viewed as securities.
• Kalshi had argued its contracts were legal under federal law and not securities.
• The outcome could lead to further legal challenges, potentially reaching the Supreme Court.