A unanimous Sixth Circuit panel ruled that Ohio and Tennessee may regulate Kalshi’s sports-event contracts under their own gambling laws, rejecting the company’s argument that the products are swaps governed exclusively by the Commodity Futures Trading Commission. Circuit Judge Julia Smith Gibbons wrote that Kalshi had not shown the contracts met the Commodity Exchange Act’s definition of a swap. The court affirmed an Ohio district court’s refusal to block enforcement and reversed a Tennessee court that had granted Kalshi an injunction. The decision follows a Ninth Circuit ruling allowing Nevada to regulate the contracts as sports bets and adds to a broader legal campaign involving New York, Polymarket and more than a dozen states. Kalshi disagreed with the ruling and said the case illustrated the problems of state-by-state regulation. The company is also expanding its institutional prediction-market business through an integration with Cantor Fitzgerald. Earlier Third Circuit litigation allowed Kalshi to continue operating in New Jersey, while state legislators have asked the U.S. Supreme Court to resolve the broader regulatory dispute.