Sixth Circuit rules Kalshi's sports prediction contracts fall under state law

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A Sixth Circuit Court of Appeals panel has ruled against prediction market provider Kalshi in a significant legal decision. The court determined that sports-related event contracts offered by prediction markets do not qualify as swaps under federal law. As a result, these contracts are not subject to federal regulatory oversight and instead fall under state jurisdiction. The ruling marks another appellate court setback for Kalshi as it continues to face legal challenges over the regulatory classification of its products.

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