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US appeals court rules states can regulate sports contracts on prediction markets, challenging federal oversight.

Market News
25 Sep 2026
CNBC
View Source
Bearish
US appeals court rules states can regulate sports contracts on prediction markets, challenging federal oversight.

The 6th U.S. Circuit Court of Appeals ruled that Ohio and Tennessee can regulate sports-related event contracts on prediction market platforms like Kalshi, rejecting the claim that these contracts are federally regulated swaps. This decision marks a significant legal setback for prediction markets, which argue their contracts fall under Commodity Futures Trading Commission (CFTC) jurisdiction. States view these contracts as gambling and enforce their own laws accordingly. The ruling follows a similar decision by the 9th Circuit and contrasts with the 3rd Circuit's ruling favoring federal regulation. The issue is expected to reach the U.S. Supreme Court for a final decision.

The appeals court ruling on states' regulation of Kalshi's sports prediction markets is presented here with Pluang's Financials-sector market data as of Sep 26, 2026 03:21 WIB. Of 85 priced US Financials stocks tradable on Pluang, 56 rose and 28 fell today. Notable movers include Coinbase Global, Inc. (COIN) at USD 194.53 with a 1-day change of -2.35%, CleanSpark Inc (CLSK) at USD 13.93 down 2.31%, and Huntington Bancshares Incorporated (HBAN) at USD 15.66 up 2.29%.

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