Kalshi Loses Sports Betting Contract Appeal, Circuit Split Widens

VERA Brief

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

A federal appeals court ruled against Kalshi's sports event contracts, stating they do not qualify as swaps under the Commodity Exchange Act. This decision deepens a circuit split regarding the regulatory treatment of financial products tied to sporting event outcomes.

Key facts

• A federal appeals court ruled against Kalshi's sports event contracts.
• The court found Kalshi's contracts did not meet the legal definition of swaps under the Commodity Exchange Act.
• The ruling upholds a lower court's decision against the exchange.
• This outcome exacerbates a divergence among federal circuits concerning the regulatory treatment of financial products tied to sporting event outcomes.
• The decision impacts Kalshi's ability to offer these contracts in Ohio and Tennessee.