A federal judge in Tennessee granted Kalshi a preliminary injunction against state sports betting laws, as its event contracts likely qualify as swaps under the Commodity Exchange Act.
A U.S. federal judge in Tennessee granted Kalshi a preliminary injunction preventing enforcement of state sports betting laws on its sports event contracts. The ruling, part of the ongoing lawsuit, determined the contracts likely meet the swap definition under the Commodity Exchange Act, placing them under Commodity Futures Trading Commission jurisdiction. This outcome reinforces Kalshi’s position that such event-based contracts, despite parallels to sports betting, are legally swaps when traded on regulated exchanges.