Sixth Circuit lets Kalshi keep sports contracts in Ohio and Tennessee
The U.S. Court of Appeals for the Sixth Circuit ruled September 26, 2026 that Kalshi may continue operating its sports event contracts in Ohio and Tennessee. The ruling diverges from the Ninth Circuit's recent decisions blocking Kalshi on tribal lands, widening the circuit split over whether CFTC registration preempts state gambling enforcement. Kalshi won the right to keep serving users in both states as litigation continues.
The ruling deepens a circuit split that only the Supreme Court can resolve. Kalshi now operates freely in Ohio and Tennessee while geofenced on tribal lands in the Circuit, creating a patchwork that fragments trader positions by geography. Robinhood faces identical exposure: its CFTC-registered sports contracts are lawful in Michigan under its gaming board deal but vulnerable to the same state enforcement logic elsewhere.
Each new circuit ruling emboldens more attorneys general to file, compounding legal spend faster than any case resolves. Traders hold positions whose validity shifts with state borders, not federal regulation. Kalshi, Robinhood, and Crypto.com have each filed Supreme Court petitions pressing the same preemption question, but delay risks more state bans while the docket fills.
Deepens a circuit-wide fight over CFTC preemption that now spans three circuits and half a dozen states, with Kalshi, Robinhood, and Crypto.com each pressing the Supreme Court to settle whether federal registration shields sports event contracts from state gambling laws.