We track 79 rulings, lawsuits and regulator actions over prediction markets, 47 of them still open. Almost every one turns on a single question. Does federal commodities law let a CFTC-regulated exchange offer sports contracts that a state treats as gambling?
Prediction market litigation
79 matters across 3 apps and 20 jurisdictions, 47 still open.
Open matters
47
Decided
32
Appeals courts that have ruled
3: the Third for Kalshi; the Sixth and Ninth against, both now asked to rehear
Supreme Court
3 petitions pending: New Jersey (No. 26-299), Robinhood (No. 26-338) and Crypto.com's exchange (No. 26-344)
CFTC
October 9 proposal would define event contracts as swaps; comments due November 18, 2026
Newest entry
October 16, 2026
Each entry on this page links the ruling or report it rests on. Nothing here is legal advice.
Every matter, newest first
Each entry names the app, the court or regulator and the docket where one exists. The summaries are ours; the source link is the record.
Where a filing date is not public, the entry says so rather than guessing.
The list covers Polymarket US, Kalshi and Robinhood. Other apps got the same letters: Ohio wrote to 10 firms on October 2, Missouri to six in September.
Two of Missouri's recipients, Crypto.com's exchange and Novig, sued the state on October 16. Neither app is in our list.
Polymarket · Ohio · lawsuit openPolymarket US sued Ohio officials in federal court after the Casino Control Commission's October 2 order to stop sports contracts. It seeks to block the state from enforcing its gaming law against them.
Kalshi · Tennessee · petition openKalshi asked the full Sixth Circuit to rehear its Ohio and Tennessee appeals. The petition holds the court's mandate, so its Tennessee injunction stays in force until the court rules. Kalshi cites the CFTC's October 9 rules on what counts as a swap.
KalshiEX LLC v. Orgel, No. 26-5235, with No. 26-3196 (6th Cir.) · Source · Tennessee page
Oct 9, 2026
Kalshi · Ohio · petition openKalshi petitioned for rehearing en banc of the Sixth Circuit's September 25 ruling for Ohio and Tennessee. It argues the decision conflicts with Sixth, Third and Ninth Circuit rulings, and that the CFTC's October 9 rules undermine it.
KalshiEX LLC v. Schuler, No. 26-3196, with No. 26-5235 (6th Cir.) · Source · Ohio page
Oct 2, 2026
Polymarket · Ohio · cease and desist openOhio's Casino Control Commission ordered Polymarket US to stop offering sports event contracts in Ohio and to confirm within 14 days, citing the Sixth Circuit's September 25 ruling.
Kalshi · Illinois · ruling decidedJudge Martha M. Pacold ruled that Kalshi's core sports contracts are likely swaps under the Commodity Exchange Act. She held Illinois's sports wagering license requirement, and the criminal law backing it, likely preempted as applied to Kalshi. She granted the injunction motions of Kalshi, Coinbase and the CFTC in part, and held the fee provisions for more briefing. Proposed injunction orders are due October 29, 2026.
KalshiEX LLC v. Raoul, No. 1:26-cv-07363; United States v. Illinois, No. 1:26-cv-03659; Coinbase Fin. Mkts., Inc. v. Raoul, No. 1:25-cv-15406 (N.D. Ill.) · Source · Illinois page
Oct 2, 2026
Robinhood · Ohio · cease and desist openOhio's Casino Control Commission reasserted its March 31, 2025 order telling Robinhood Derivatives to stop offering sports event contracts in Ohio. Citing the Sixth Circuit's September 25 ruling, it gave Robinhood 14 days to confirm compliance.
Robinhood · New Jersey · ruling decidedA federal judge entered a consent order continuing preliminary relief for Robinhood against New Jersey's gaming regulators.
Robinhood Derivatives, LLC v. Flaherty, No. 1:25-cv-14723 (D.N.J.) · Source · New Jersey page
Sep 25, 2026
Kalshi · Ohio · ruling decidedThe Sixth Circuit ruled against Kalshi in its appeals from Ohio and Tennessee, holding that its sports event contracts are not swaps under the Commodity Exchange Act. So state gaming law applies to them. It is the second federal appeals court, after the Ninth, to rule against Kalshi on the question. Kalshi petitioned for rehearing en banc on October 9, 2026.
KalshiEX LLC v. Schuler, No. 26-3196, with No. 26-5235 (6th Cir.) · Source · Ohio page
Sep 25, 2026
Kalshi · Tennessee · ruling decidedThe Sixth Circuit vacated Kalshi's preliminary injunction against Tennessee officials, holding its sports event contracts are not swaps. It held federal law does not preempt Tennessee's gambling law. The vacatur takes effect when the mandate issues, which Kalshi's October 9 petition for rehearing en banc has put on hold.
KalshiEX LLC v. Orgel, No. 26-5235 (6th Cir.), with No. 26-3196 · Source · Tennessee page
Sep 24, 2026
Polymarket · New York · lawsuit openThe Attorney General and Governor sued Polymarket US in state court, calling it an unlicensed gambling operation, and Polymarket US removed the case. Polymarket US sued New York in federal court the same day to block enforcement. It moved for a preliminary injunction on October 12, 2026.
James v. QCX LLC, No. 1:26-cv-08338 (S.D.N.Y.) (removed); QCX LLC v. James, No. 1:26-cv-08345 (S.D.N.Y.) · Source · New York page
Sep 21, 2026
Kalshi · Wisconsin · petition openA petition for permission to appeal in the Ho-Chunk case was filed in the Seventh Circuit after the district court certified the question.
Kalshi · Federal · ruling decidedThe Ninth Circuit reversed a district court's denial of a preliminary injunction sought by two California tribes, Blue Lake Rancheria and Chicken Ranch Rancheria of Me-Wuk Indians. It held they are likely to succeed on their claim that Kalshi's sports contracts offered on their lands violate the Indian Gaming Regulatory Act. The mandate issued on October 8, 2026, and the case is back in the district court.
Blue Lake Rancheria v. Kalshi, Inc., No. 25-7504 (9th Cir.) · Source
Sep 16, 2026
Kalshi · Missouri · cease and desist openMissouri's Attorney General ordered Kalshi to stop offering sports wagering to Missourians unless licensed by the Missouri Gaming Commission. She asked it to confirm compliance within 30 days, by October 16, 2026.
Polymarket · Missouri · cease and desist openMissouri's Attorney General ordered Polymarket US (QCX LLC) to stop offering sports wagering to Missourians unless licensed by the Missouri Gaming Commission. She asked it to confirm compliance within 30 days, by October 16, 2026.
Robinhood · Missouri · cease and desist openMissouri's Attorney General ordered Robinhood Derivatives to stop offering sports wagering to Missourians unless licensed by the Missouri Gaming Commission. She asked it to confirm compliance within 30 days, by October 16, 2026.
Polymarket · Connecticut · cease and desist openConnecticut ordered Polymarket, among nine platforms it said were operating in the state, to stop offering sports event contracts.
Robinhood · Nevada · petition openRobinhood asked the Supreme Court to review the Ninth Circuit's Nevada ruling. The petition is No. 26-338. Nevada's response is due November 13, 2026.
Kalshi · Nevada · petition openKalshi petitioned the Ninth Circuit to rehear its Nevada appeal en banc. On September 25 it asked the court to hold the petition until the CFTC finalizes its revised rule on sports contracts. Nevada opposed on October 1. On October 12 Kalshi cited the CFTC's October 9 proposed and interim rules on the swap definition in support.
Kalshi · Utah · ruling decidedThe Tenth Circuit denied Kalshi's emergency motion for an injunction pending appeal, leaving Utah free to enforce its gambling laws against Kalshi's sports contracts while the appeal proceeds.
Kalshi · Iowa · ruling decidedIn the suit Kalshi brought pre-emptively against Iowa officials, Judge Stephen Locher denied a preliminary injunction, finding Kalshi unlikely to succeed on its argument that federal law preempts Iowa's gambling laws. Kalshi has appealed to the Eighth Circuit.
Robinhood · Michigan · ruling decidedUnder a court-approved stipulation, Robinhood stopped new sports event contracts in Michigan after September 9. Open ones had to close by October 9, 2026, while Michigan holds off enforcement.
Kalshi · Michigan · ruling decidedMichigan judge granted a preliminary injunction requiring Kalshi to geofence Michigan residents from sports event contracts, on the state's argument that they violate the Lawful Sports Betting Act.
Kalshi · New Jersey · petition openNew Jersey asked the Supreme Court to review the Third Circuit's ruling for Kalshi, the first state to take the prediction market question to the Court. The petition followed the Ninth Circuit's contrary ruling in August. Kalshi's response is due November 9, 2026. Ohio and other states, 145 tribes, the NFL and the American Gaming Association filed amicus briefs backing New Jersey.
Kalshi · Nevada · ruling decidedNinth Circuit ruled 3-0 against Kalshi, affirming dissolution of its preliminary injunction against the Nevada Gaming Control Board. The panel accepted that the CEA preempts state regulation of genuine swaps on a DCM. But it held Kalshi's sports event contracts do not meet the statutory definition of a swap, so Nevada may enforce its gambling law. This is the direct opposite of the Third Circuit's holding four months earlier. Kalshi petitioned for rehearing en banc on September 9; the petition is pending.
Kalshi · Connecticut · lawsuit openThe state sued Kalshi to stop unlicensed sports wagering; Kalshi removed the case to federal court the same day. The state's motion to send it back to state court was fully briefed on October 8, 2026.
State of Connecticut v. KalshiEX LLC, No. 3:26-cv-01382 (D. Conn.) · Source · Connecticut page
Aug 14, 2026
Kalshi · Nevada · enforcement openThe Gaming Control Board said Kalshi had missed its geofence deadline and asked for $120,000 a day.
Nevada ex rel. Nev. Gaming Control Bd. v. KalshiEX LLC, No. 26-OC-00050 (Nev. 1st Jud. Dist. Ct.) · Source · Nevada page
Aug 13, 2026
Kalshi · Washington · ruling decidedA King County Superior Court order, announced by the Attorney General, requires Kalshi to stop offering sports, election, politics, entertainment, culture, tech and science, and mention contracts to people in Washington, with geofencing in place by September 2. The state's suit had been remanded to state court from federal court in May.
Kalshi · Maryland · lawsuit openThe City of Baltimore sued Kalshi, with Robinhood, Webull and Coinbase, in state court under consumer protection law over unlicensed sports wagering. The case was removed to federal court. On October 1, 2026 the court stayed it until the Supreme Court acts on the pending petitions, or four months if sooner.
City of Baltimore v. KalshiEX LLC, No. C-24-CV-26-005532 (Cir. Ct. Balt. City), removed as No. 1:26-cv-03217 (D. Md.) · Source · Maryland page
Aug 13, 2026
Polymarket · Maryland · lawsuit openThe City of Baltimore sued Polymarket US's exchange, QCX LLC, in state court under consumer protection law over unlicensed sports wagering and its legality claims. The case was removed to federal court, where the city has moved to send it back. Unlike the city's Kalshi case, it has not been stayed.
City of Baltimore v. QCX LLC, No. C-24-CV-26-005535 (Cir. Ct. Balt. City), removed as No. 1:26-cv-03253 (D. Md.) · Source · Maryland page
Aug 10, 2026
Kalshi · Connecticut · ruling decidedJudge Vernon D. Oliver denied Kalshi a preliminary injunction against Connecticut's enforcement of its gambling laws, and on August 15 denied an injunction pending appeal. Kalshi has appealed to the Second Circuit (No. 26-2239) and filed its opening brief on September 30, with a corrected copy on October 2. The CFTC's separate suit against the state (3:26-cv-00498) is pending.
Kalshi · Utah · ruling decidedJudge Robert J. Shelby granted Utah summary judgment in the suit Kalshi brought pre-emptively, holding that the Commodity Exchange Act does not preempt Utah's enforcement of its anti-gambling laws against Kalshi's sports contracts, and closed the case. Kalshi has appealed.
KalshiEx LLC v. Cox, 2:26-cv-00151 (D. Utah) · Source · Utah page
Jul 31, 2026
Kalshi · New York · lawsuit openThe Attorney General and Governor sued Kalshi in state court, alleging its prediction market is an illegal, unlicensed gambling operation, and asked for an order halting its event contracts in New York, forfeiture of gains, restitution and penalties.
Kalshi · Wisconsin · ruling decidedThe Eastern District of Wisconsin denied the CFTC's request to enjoin Wisconsin; appeals are pending in the Seventh Circuit.
United States v. Wisconsin, No. 2:26-cv-00749 (E.D. Wis.); appeals Nos. 26-2636, 26-2675 (7th Cir.) · Source · Wisconsin page
Jul 27, 2026
Kalshi · Minnesota · ruling decidedA federal judge preliminarily enjoined Minnesota's law banning prediction markets, which makes hosting or advertising them a felony, days before it was due to take effect on August 1. Kalshi, Polymarket US and the CFTC brought the challenge; the court found them likely to succeed on the argument that federal law preempts the ban.
Polymarket · Minnesota · ruling decidedIn Polymarket US's challenge, a federal judge enjoined Minnesota's prediction market ban against CFTC-registered exchanges until a final ruling, before it took effect.
Kalshi · Washington · ruling decidedJudge McHale found Kalshi likely violated the Gambling Act and granted Washington a preliminary injunction.
State of Washington v. KalshiEX LLC (King County Super. Ct.) · Source · Washington page
Jul 14, 2026
Kalshi · Michigan · ruling decidedThe CFTC stayed Kalshi’s emergency rule to force-liquidate Michigan positions that the Ingham County court had ordered voided, cancelled and refunded. It directed Kalshi to fulfill those trades in the ordinary course.
In the Matter of KalshiEX LLC’s Notice Regarding Market Emergency Declaration and Emergency Rule Filing (CFTC, Jul 14, 2026) · Source · Michigan page
Jul 7, 2026
Kalshi · New York · ruling decidedKalshi sued New York Gaming Commission officials after the Commission ordered it on October 24, 2025 to stop offering unlicensed sports wagering. Judge Analisa Torres denied Kalshi a preliminary injunction, finding New York's gambling laws as applied to its sports contracts are not preempted by the Commodity Exchange Act, and denied an injunction pending appeal on July 27. Kalshi's appeal is before the Second Circuit.
Kalshi · Illinois · lawsuit openKalshi sued Illinois officials to block enforcement of state gambling law and the new exchange-wager licensing law. On June 29 the state agreed not to enforce while Kalshi's injunction motion is pending. On October 2, 2026 the court granted the motion in part; see the ruling entry.
Kalshi · Kentucky · lawsuit openThe CFTC sued Kentucky in federal court to stop it enforcing state gambling law against exchange-listed event contracts. It moved for a preliminary injunction on June 30.
United States v. Kentucky, No. 3:26-cv-00049 (E.D. Ky.) · Source · Kentucky page
Jun 17, 2026
Polymarket · Michigan · ruling decidedIn the suit Polymarket US (QCX) brought pre-emptively against Michigan officials, Judge Paul L. Maloney denied a preliminary injunction, having denied a temporary restraining order on March 10. Polymarket has appealed to the Sixth Circuit.
Kalshi · Kentucky · lawsuit openKentucky's Attorney General sued Kalshi, with Robinhood, Webull and Coinbase, calling its sports contracts unlicensed gambling. Kalshi removed the case to federal court two days later.
Commonwealth of Kentucky v. KalshiEX LLC, No. 26-CI-00689 (Franklin Cir. Ct.), removed as No. 3:26-cv-00048 (E.D. Ky.) · Source · Kentucky page
Jun 17, 2026
Polymarket · Kentucky · lawsuit openKentucky's Attorney General sued Polymarket US and affiliates over sports contracts; Polymarket removed the case the next day. On October 14, 2026 a magistrate judge recommended returning it to state court.
Commonwealth of Kentucky v. QCX LLC, No. 3:26-cv-00047 (E.D. Ky.) · Source · Kentucky page
May 29, 2026
Polymarket · Nevada · ruling decidedJudge Jason Woodbury granted the board a preliminary injunction against QCX LLC, which does business as Polymarket US.
Nevada ex rel. Nev. Gaming Control Bd. v. Blockratize, No. 26-OC-00012-1B (Nev. 1st Jud. Dist. Ct.) · Source · Nevada page
May 28, 2026
Kalshi · Rhode Island · petition decidedThe CFTC moved to intervene on the apps' side in the Rhode Island cases; the court granted the motion on June 26.
Kalshi · Rhode Island · lawsuit openKalshi sued Rhode Island officials in federal court to block enforcement of state gambling law. Hours later the Attorney General sued Polymarket US and Kalshi in state court; the cases were consolidated in federal court.
KalshiEX LLC v. Furcolo, No. 1:26-cv-00327 (D.R.I.), with No. 1:26-cv-00333 · Source · Rhode Island page
May 21, 2026
Polymarket · Rhode Island · lawsuit openThe Attorney General sued Polymarket US and Kalshi in state court, calling them illegal gaming operations. Polymarket US removed the case to federal court the next day.
State of Rhode Island v. KalshiEX LLC and QCX LLC, No. PC-2026-02753 (R.I. Super. Ct.), removed as No. 1:26-cv-00333 (D.R.I.) · Source · Rhode Island page
May 21, 2026
Robinhood · Washington · ruling decidedA federal judge approved Washington's agreement not to enforce against Robinhood while the Nevada appeals run.
Robinhood Derivatives LLC v. Griffin, No. 3:26-cv-05311 (W.D. Wash.) · Source · Washington page
May 11, 2026
Kalshi · Wisconsin · ruling decidedThe court found the Ho-Chunk Nation likely to succeed on its IGRA claim but denied a preliminary injunction.
Kalshi · Wisconsin · lawsuit openThe CFTC sued Wisconsin in federal court, arguing federal law bars the state from enforcing its gambling law against exchange-listed event contracts.
United States v. Wisconsin, No. 2:26-cv-00749 (E.D. Wis.) · Source · Wisconsin page
Apr 23, 2026
Kalshi · Wisconsin · lawsuit openWisconsin sued Kalshi, Robinhood and Coinbase in state court, calling sports contracts illegal commercial gambling. The case was removed to federal court.
State of Wisconsin v. Kalshi, Inc., No. 3:26-cv-00378 (W.D. Wis.) · Source · Wisconsin page
Apr 23, 2026
Polymarket · Wisconsin · lawsuit openWisconsin sued Polymarket US's exchange, QCX LLC, the same day, over its sports contracts.
State of Wisconsin v. QCX, LLC, No. 3:26-cv-00375 (W.D. Wis.) · Source · Wisconsin page
Apr 14, 2026
Kalshi · Ohio · enforcement openThe Ohio Casino Control Commission issued a notice of its intent to impose a $5 million fine on Kalshi over its unlicensed sports event contracts. The fine is not final.
Kalshi · New Jersey · ruling decidedThird Circuit affirmed a preliminary injunction against New Jersey, holding Kalshi's sports event contracts are 'swaps' under the Commodity Exchange Act and that the CEA impliedly preempts state regulation of designated contract markets through both field and conflict preemption. New Jersey cannot enforce its gambling laws against Kalshi. One judge dissented, arguing the presumption against preemption applies to gambling as a traditionally state-regulated domain.
Kalshi · Nevada · ruling decidedJudge Jason Woodbury granted the board a preliminary injunction against Kalshi's sports, election and entertainment contracts.
Nevada ex rel. Nev. Gaming Control Bd. v. KalshiEX LLC, No. 26-OC-00050 (Nev. 1st Jud. Dist. Ct.) · Source · Nevada page
Mar 30, 2026
Robinhood · Washington · lawsuit stayedRobinhood sued Washington's attorney general and gambling commissioners to block enforcement against its event contracts.
Robinhood Derivatives LLC v. Griffin, No. 3:26-cv-05311 (W.D. Wash.) · Source · Washington page
Mar 27, 2026
Kalshi · Washington · lawsuit openAttorney General Nick Brown sued Kalshi for illegal gambling and consumer protection violations.
State of Washington v. KalshiEX LLC (King County Super. Ct.) · Source · Washington page
Mar 16, 2026
Kalshi · Arizona · lawsuit openArizona filed a 20-count criminal information against Kalshi for operating an unlicensed gambling business and for election wagering. The charges include contracts on Arizona's 2026 races for governor and secretary of state and the 2028 presidential race. The CFTC's suit against Arizona (2:26-cv-02246) was consolidated into Kalshi's own suit. On the CFTC's motion, a federal judge issued a temporary restraining order on April 10, 2026 and a preliminary injunction on May 5, 2026. They restrain the state from enforcing its gambling laws against Kalshi. The injunction is on appeal to the Ninth Circuit, where Arizona's September 14 motion to vacate it for sports contracts is undecided.
KalshiEX LLC v. Johnson, 2:26-cv-01715-PHX-MTL (D. Ariz.), consolidated with United States v. Arizona, 2:26-cv-02246; appeal No. 26-4281 (9th Cir.) · Source · Arizona page
Mar 11, 2026
Kalshi · Iowa · lawsuit openKalshi sued Iowa's attorney general and the Racing and Gaming Commission pre-emptively, asking a federal court to block enforcement of state gambling law against its sports contracts.
Kalshi · Ohio · ruling decidedIn Kalshi's federal suit against Ohio regulators, the court denied a preliminary injunction, finding sports event contracts are not swaps within the CFTC's exclusive jurisdiction and, alternatively, that the Commodity Exchange Act does not preempt Ohio's gambling laws. It denied an injunction pending appeal on March 20, 2026. The Sixth Circuit affirmed on September 25, 2026.
Robinhood · Michigan · lawsuit openRobinhood sued Michigan officials pre-emptively to block enforcement of state gambling law against its sports event contracts.
Kalshi · Utah · lawsuit decidedKalshi sued Utah's governor and attorney general in federal court to block enforcement of Utah gambling law.
KalshiEx LLC v. Cox, No. 2:26-cv-00151 (D. Utah) · Source · Utah page
Feb 19, 2026
Kalshi · Tennessee · ruling decidedA federal judge granted Kalshi a preliminary injunction against Tennessee officials after the Sports Wagering Council ordered it to halt sports contracts. The court found the contracts are swaps and that federal law preempts the state's gambling laws. The Sixth Circuit vacated the injunction on September 25, 2026. Kalshi's October 9 petition for rehearing en banc keeps it in force until the court rules on the petition.
Kalshi · Nevada · lawsuit openThe Gaming Control Board sued Kalshi in state court in Carson City for unlicensed wagering.
Nevada ex rel. Nev. Gaming Control Bd. v. KalshiEX LLC, No. 26-OC-00050 (Nev. 1st Jud. Dist. Ct.) · Source · Nevada page
Feb 9, 2026
Polymarket · Massachusetts · lawsuit stayedPolymarket US sued the Attorney General and the Gaming Commission to stop them applying state gaming law to its sports contracts. The case is administratively closed until the Supreme Judicial Court rules on Kalshi's injunction, and the state agreed not to enforce meanwhile.
Kalshi · Massachusetts · ruling openA Massachusetts Superior Court judge granted the state a preliminary injunction barring Kalshi from offering sports event contracts without a state license. The order is stayed while Kalshi's appeal is before the Supreme Judicial Court, which heard argument on May 4, 2026 and has not yet ruled.
Polymarket · Nevada · lawsuit openThe Gaming Control Board sued Polymarket, Polymarket US and a third affiliate in state court.
Nevada ex rel. Nev. Gaming Control Bd. v. Blockratize, No. 26-OC-00012-1B (Nev. 1st Jud. Dist. Ct.) · Source · Nevada page
Jan 9, 2026
Polymarket · Tennessee · cease and desist openThe Sports Wagering Council ordered Polymarket, with Kalshi and Crypto.com's exchange, to stop sports event contracts for Tennessee customers, void open contracts and refund deposits by January 31.
Kalshi · Connecticut · cease and desist openConnecticut's Department of Consumer Protection ordered Kalshi to stop offering sports event contracts in the state.
Robinhood · Connecticut · cease and desist openConnecticut's Department of Consumer Protection ordered Robinhood Derivatives to stop offering sports event contracts in the state.
Polymarket · Federal · approval decidedThe CFTC issued an Amended Order of Designation to QCX LLC, d/b/a Polymarket US, allowing futures commission merchants to intermediate trades and carry customer accounts on the exchange. QCX had been designated a contract market on July 9, 2025.
Robinhood · Massachusetts · lawsuit openRobinhood sued Massachusetts officials in federal court to block the state from applying its gaming laws to its sports event contracts, arguing they are preempted by the Commodity Exchange Act. The court dismissed the case twice as premature, most recently on March 13, 2026, and Robinhood's appeal to the First Circuit is pending.
Robinhood · Nevada · lawsuit openRobinhood Derivatives sued Nevada's gaming regulators in federal court.
Robinhood Derivatives, LLC v. Dreitzer, No. 2:25-cv-01541 (D. Nev.) · Source · Nevada page
Apr 21, 2025
Kalshi · Maryland · lawsuit openMaryland argues sports contracts are unlicensed bets. Kalshi's request for an injunction was denied and is on appeal to the Fourth Circuit, a third circuit that may weigh in on the split.
Kalshi, Polymarket US and the exchanges behind other apps are designated contract markets. The CFTC regulates them under the Commodity Exchange Act.
The exchanges argue that law gives the CFTC exclusive power over what they list. So, they say, no state can ban or license their contracts.
States answer that a contract paying out on a football game is a sports wager. Gambling, they say, has always been theirs to regulate.
Tribes add a third claim. Under the Indian Gaming Regulatory Act, gaming on their land needs their consent.
Where the appeals courts stand
Three federal appeals courts have ruled, and they split two to one against the exchanges.
The Third Circuit sided with Kalshi on April 6, 2026, in New Jersey's case (No. 25-1922). It held sports contracts are swaps, so federal law displaces state gambling law.
The Ninth Circuit disagreed on August 28, in Nevada's case (No. 25-7516). It held those contracts are likely not swaps, so Nevada may enforce.
On September 16, the Ninth Circuit also sided with two California tribes (No. 25-7504). A trade placed on tribal land is gaming there, it held.
The Sixth Circuit joined the Ninth on September 25, in the Ohio and Tennessee cases (No. 26-3196).
Kalshi wants both losing rulings reheard en banc. It petitioned the Ninth Circuit on September 9 and the Sixth on October 9. Neither court has ruled, so neither mandate has issued.
Appeals are pending in other circuits too. The Fourth heard Maryland's case on May 7 and has not ruled. The Second has New York's and Connecticut's. The Seventh, Eighth and Tenth have Wisconsin's, Iowa's and Utah's.
Trial courts differ too. On October 2, an Illinois federal judge found the state's licensing law likely preempted as applied to Kalshi.
What the CFTC is doing
The CFTC withdrew its 2024 plan to bar election and sports contracts on February 4, 2026.
On June 10, it proposed new rules instead. Most sports contracts would stay, but contracts on injuries, officiating calls and single in-game actions would go.
Comments closed on July 27. Just before, 44 states wrote that the CFTC has no authority over sports contracts at all.
Those rules are not final. On September 24, the CFTC told the Ninth Circuit it expects to finish them within two months.
On October 9, it proposed defining “swap” to include event contracts on sports, politics, culture and weather. Comments are due November 18.
That goes to the exact question the Sixth and Ninth Circuits decided against Kalshi. It is a proposal, not law.
The same day, it adopted an interim final rule, in effect from October 19. It says sportsbook and casino wagers are not swaps.
Kalshi cites both rules in asking the Sixth Circuit to rehear its case.
What would settle it
The Supreme Court, most likely. Three petitions are before it: New Jersey's (No. 26-299), Robinhood's (No. 26-338) and that of Crypto.com's exchange (No. 26-344).
Responses are due November 9, 13 and 16. The Court has not said whether it will hear any of them.
A ruling there would bind every state at once, in every circuit.
Congress could also amend the Commodity Exchange Act to say who regulates sports contracts. No such bill has passed.
A final CFTC rule could also matter. Its October proposal would define sports contracts as swaps, the point the circuits split on. It would not, on its own, end the fight over state law.
Check a state
Every state with a matter on file has its own page. Each one shows where the apps stand there and the actions on record.
Mostly over sports contracts. States argue they are unlicensed sports betting. The apps argue federal commodities law puts them under the CFTC instead.
What is the Kalshi lawsuit about?
There are many. Most are states or tribes arguing Kalshi's sports contracts are unlicensed gambling. Kalshi argues federal law puts them under the CFTC alone.
Has Polymarket been sued?
Yes. Nevada, Wisconsin, Rhode Island, Kentucky, Baltimore and New York have sued Polymarket US or its affiliates. Polymarket US has sued several states too, most recently Ohio on October 16. Private class actions against Polymarket are pending too.
Is Kalshi legal after the Ninth Circuit ruling?
It is still a CFTC-designated exchange. The ruling lets Nevada enforce its gaming law against Kalshi's sports contracts. It also binds federal courts across the Ninth Circuit. Kalshi has asked the full court to rehear the case.
Will the Supreme Court decide this?
The circuit split makes it likely but not certain. Three petitions are pending, the first filed by New Jersey on September 2, 2026. The Court has not yet said whether it will hear any of them.
Can I still trade while a case is pending?
Usually, yes. A pending case changes nothing until a court order or a state action is in force. Each state page says which apply.
Is this legal advice?
No. It summarizes public rulings and filings, each cited. For a decision that matters, ask a lawyer licensed in your state.