The US Court of Appeals for the Sixth Circuit dismissed Kalshi's appeal, ruling that its sports event contracts are not swaps under Commodity Futures Trading Commission jurisdiction and can be regulated under Ohio and Tennessee gambling laws. The unanimous three-judge decision aligns with a similar Ninth Circuit ruling but conflicts with an April Third Circuit decision that allowed Kalshi to keep operating in New Jersey while its appeal proceeded. The split among federal appeals courts, alongside Supreme Court briefs from state lawmakers, has increased the prospect that the justices will decide whether prediction-market companies fall under federal commodities oversight or state gambling regulation.