‘History reveals no evidence’ Congress intended to preempt gambling laws, judge says in Kalshi case
An Ohio judge denied Kalshi's request to block state gambling enforcement, finding no evidence Congress intended to preempt state sports betting laws.Summary
Chief Judge Sarah D. Morrison of the U.S. District Court for the Southern District of Ohio denied Kalshi's request for a preliminary injunction, which sought to stop Ohio regulators from enforcing state gambling laws against its event contracts. Kalshi operates a prediction markets platform, and the core legal dispute is whether its contracts constitute sports betting subject to state gambling rules or are regulated under the federal Commodity Exchange Act (CEA) by the CFTC. Judge Morrison ruled that historical evidence, including the 2010 Dodd-Frank amendments, shows no intent by Congress to preempt state sports gambling laws. This ruling contrasts with a recent decision in Tennessee, where a judge granted Kalshi a preliminary injunction, suggesting federal commodities law might preempt state regulation. Kalshi plans to appeal the Ohio decision.
(Source：The Block)