{
  "id": 10715038,
  "title": "A Second Federal Appeals Court Rules Sports Event Contracts Are Not Swaps",
  "url": "https://urgent.news/2026/09/29/a-second-federal-appeals-court-rules-sports-event-contracts-are-not",
  "topic": "world",
  "section": "World",
  "published": "2026-09-29T14:50:25.000Z",
  "source": {
    "name": "PYMNTS",
    "slug": "pymnts",
    "url": "https://www.pymnts.com/legal/2026/a-second-federal-appeals-court-rules-sports-event-contracts-are-not-swaps/"
  },
  "original_language": "en",
  "account": "A federal appeals court has ruled that sports event contracts offered by Kalshi are not federally regulated \"swaps\" and that states can still enforce their gambling laws against the platform. The unanimous U.S. Court of Appeals for the Sixth Circuit decided in favor of Ohio and Tennessee on Friday, Sept. 25. This ruling weakens Kalshi's legal strategy by denying that its sports contracts meet the criteria for swaps under the Commodity Exchange Act, and also asserting that the CEA does not preempt state gambling laws. The distinction hinges on the CEA's definition of swaps as contracts tied to events with financial consequences, which sports results do not meet. The Sixth Circuit's decision could narrow prediction markets' ability to classify sports wagering as federally regulated derivatives. This ruling solidifies an appellate split, with the Sixth Circuit joining the Ninth Circuit in siding with states against Kalshi, leaving only one appellate victory for the platform. The CFTC supports Kalshi's stance, arguing for federal jurisdiction over the contracts, and has separately sued nine states over regulation efforts. Prediction markets now face a fragmented regulatory landscape if the Supreme Court or Congress does not establish a nationwide rule.",
  "summary": "A federal appeals court has dealt prediction markets another setback, ruling that sports event contracts offered by Kalshi are not federally regulated “swaps” and that states remain free to enforce their gambling laws against the platform. The unanimous U.S. Court of Appeals for the Sixth Circuit ruling Friday (Sept. 25) sided with Ohio and Tennessee, […] The post A Second Federal Appeals Court…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}