A federal court in Ohio has denied prediction markets platform Kalshi’s motion for a preliminary injunction against state authorities over alleged violations of sports gambling laws. The ruling, issued on March 9 by US District Court Chief Judge Sarah Morrison, prevents Kalshi from blocking the Ohio Casino Control Commission and the state attorney general from regulating its sports event contracts.
The decision noted that even if the contracts qualified as swaps, the Commodity Exchange Act (CEA) would not automatically preempt Ohio’s gambling statutes. The court emphasized that federal inaction on regulating these contracts does not imply permissibility under federal law, contrasting with CFTC Chair Michael Selig’s earlier statements asserting federal oversight of prediction markets.
Kalshi said it respectfully disagrees with the ruling and intends to appeal, citing a recent federal decision in Tennessee with a contrary outcome. The case highlights the ongoing legal uncertainty for prediction market operators navigating overlapping state and federal regulatory frameworks, particularly in sports betting.
