Tennessee AG Skrmetti appeals to 6th Circuit to block Kalshi sports contracts
Tennessee Attorney General Jonathan Skrmetti has appealed to the U.S. Court of Appeals for the Sixth Circuit to reverse a federal district court ruling that had blocked the state from enforcing its sports wagering laws against Kalshi. In his filing, Skrmetti argues that Kalshi's sports event contracts amount to illegal sports betting operating under the guise of federally regulated financial instruments, drawing direct comparisons to licensed sportsbooks including FanDuel, DraftKings, and BetMGM. The appeal, filed the week of May 26, sets up a clash between state gambling authority and the federal district ruling that cleared Kalshi's products under the Commodity Exchange Act, allowing the CFTC-regulated platform to list sports contracts nationally.
A Sixth Circuit reversal would restore Tennessee's power to enforce against Kalshi, creating a binding circuit precedent that four other state attorneys general could cite to override federal district rulings in their jurisdictions.
Tennessee becomes the fifth state to formally challenge Kalshi's sports event contracts this month, joining Rhode Island, Minnesota, Pennsylvania, and the tribal cases, deepening the multilayered fight over whether CFTC-regulated platforms can operate outside state gambling frameworks.