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The CFTC filed an amicus brief Tuesday in the U.S. Court of Appeals for the Sixth Circuit backing Kalshi against Ohio's 2025 complaint, arguing the state is overstepping federal jurisdiction over prediction markets.
Why it matters
The filing puts the federal derivatives regulator on record siding with a designated contract market against a state gaming enforcement action — a precedent the rest of the prediction-market sector will read closely. Ohio sued Kalshi last year over its sports-related event contracts, alleging they violate state gambling laws.
Market impact
The amicus brief is the latest move in a broader CFTC push to assert federal primacy over the sector: the agency has sued Wisconsin, Illinois, Arizona, Connecticut, and New York in recent months over similar jurisdictional claims. The Sixth Circuit ruling will set binding precedent across the covered states and shape how prediction-market operators structure their offerings for the rest of 2026.
Frequently asked questions
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What did the CFTC file in the Kalshi-Ohio case?
The CFTC filed an amicus brief Tuesday in the U.S. Court of Appeals for the Sixth Circuit backing Kalshi and arguing that Ohio is overstepping federal jurisdiction by trying to regulate prediction markets as gambling.
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Why is the Ohio lawsuit against Kalshi significant?
Ohio sued Kalshi over its sports-related event contracts, alleging they violate state gambling laws. The Sixth Circuit's eventual ruling will set binding precedent on whether event contracts fall under federal CFTC oversight or state gaming enforcement.
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How many states has the CFTC sued over prediction markets?
The CFTC has sued five states — Wisconsin, Illinois, Arizona, Connecticut, and New York — in addition to filing the Ohio amicus brief, as part of a broader push to assert federal primacy over the prediction-market sector.
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What is Kalshi's legal status in this fight?
Kalshi operates as a CFTC-designated contract market, which is the basis for the agency's argument that federal jurisdiction preempts state-level gambling enforcement against its event contracts.
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What happens if the Sixth Circuit rules for Ohio?
A ruling for Ohio would undermine Kalshi's federal-preemption defense and could embolden other states to pursue similar gambling-law actions against event-contract platforms, fragmenting the prediction-market regulatory landscape.
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