Sixth Circuit Rules Against Kalshi in Ohio and Tennessee

Kalshi lost two consolidated appeals in Cincinnati’s federal appeals court: KalshiEX LLC v. Schuler (Ohio) and KalshiEX LLC v. Orgel (Tennessee). Judge Gibbons wrote for a unanimous panel that also included Judges Clay and Bloomekatz. The court heard argument on July 30, 2026.

What the court decided

The court resolved both appeals against Kalshi, which produced opposite results in the two states.

• Ohio. A federal district court in Ohio had refused to give Kalshi a preliminary injunction on March 10, 2026. The Sixth Circuit affirmed that refusal.
• Tennessee. A federal district court in Tennessee had granted Kalshi a preliminary injunction on February 20, 2026, after the state’s Sports Wagering Council sent cease-and-desist letters. The Sixth Circuit vacated it.

On the law, the panel held that Kalshi had not shown its sports event contracts are “swaps” under the Commodity Exchange Act. It added that even if they were swaps, the Act does not expressly or impliedly preempt state gambling law. That second step matters. It means a later ruling that the contracts are swaps would not, on its own, rescue Kalshi in this circuit.

Why this ruling matters

The scoreboard among federal appeals courts now stands at two to one against Kalshi:

The Sixth Circuit went a step further than the Ninth by saying preemption would fail even if the contracts were swaps. New Jersey, Robinhood and Crypto.com’s exchange have already asked the Supreme Court to step in; our Supreme Court analysis covers those petitions, and the state-by-state legal tracker has the background.

Who is affected

The most direct effect is on Kalshi users in Ohio and Tennessee.

• In Tennessee, Kalshi no longer has a court order protecting it from state enforcement.
• In Ohio, the state already had the upper hand. The Ohio Casino Control Commission issued a notice seeking a $5 million fine against Kalshi on April 14, 2026, citing under-21 users, unpaid tax and advertising rules, according to local press reports.

Reports conflict on whether Kalshi now blocks sports contracts in either state. We have not confirmed its current status in Ohio or Tennessee from an official Kalshi source. If you trade there, the app’s location check is the authority on what you can access. Contracts on economics, weather and finance were not the subject of these cases.

More broadly, the opinion binds federal courts in Kentucky, Michigan, Ohio and Tennessee. A Michigan state court has already ordered Kalshi to geofence sports contracts, and Kentucky’s attorney general has lawsuits pending against several platforms.

What happens next

Kalshi can ask the full Sixth Circuit to rehear the case, petition the Supreme Court, or both. Kalshi told reporters it does not expect the decision to survive further review, according to CoinDesk. We have not confirmed whether it has filed for either as of October 4, 2026.

The more likely venue for a final answer is the Supreme Court, where three petitions on the same question are pending. Responses are due between October 14 and November 9, 2026. Until the Court acts, state-by-state outcomes will keep depending on which circuit a state sits in.

If you trade on Kalshi in Ohio or Tennessee, watch for notices from Kalshi about any change to what it offers in your state. Read our Kalshi review for how the platform works and what it costs, and our explainer on how prediction markets differ from sports betting for the distinction the courts are fighting over.