A federal court in Ohio denied prediction markets platform Kalshi‘s request for a preliminary injunction against state regulators. The ruling rejected Kalshi’s argument that its sports contracts are under the exclusive jurisdiction of the Commodity Futures Trading Commission (CFTC), stating federal law does not preempt Ohio’s gambling statutes.
A federal court in Ohio has denied a motion by prediction markets platform Kalshi for a preliminary injunction against state authorities. The order blocks the company’s attempt to stop the Ohio Casino Control Commission and attorney general from regulating its sports betting contracts.
US District Court Chief Judge Sarah Morrison denied the request, finding Kalshi failed to show its contracts are under the Commodity Futures Trading Commission’s (CFTC) exclusive jurisdiction. “Kalshi fails to establish that Congress intended the CEA to preempt state laws on sports gambling,” stated the opinion.
The decision contradicts recent statements by CFTC Chair Michael Selig regarding federal oversight. Kalshi faces similar legal challenges in other states over allegations of unlicensed sports betting operations.
“This Court does not endeavor to explain why the CFTC has not exercised its authority […] with respect to the sports-event contracts,” the filing noted. It concluded the agency’s inaction does not prove the contracts are permissible under federal commodities law.
A spokesperson for Kalshi stated the company respectfully disagrees with the Ohio court’s decision and will promptly seek an appeal. The spokesperson noted this ruling splits from a recent federal court decision in Tennessee.
CFTC Chair Selig said last week the regulator is working to provide guidance on prediction markets soon. He is currently the sole Senate-confirmed commissioner on the five-person panel.
