CFTC Supports Kalshi in Ohio Prediction Markets Legal Dispute

The Commodity Futures Trading Commission (CFTC) has backed prediction market platform Kalshi in an ongoing legal dispute with Ohio, intensifying the debate over whether states or federal regulators should oversee prediction based trading markets.

In a legal brief submitted to the U.S. Court of Appeals for the Sixth Circuit on Tuesday, the CFTC argued that Ohio exceeded its authority by attempting to regulate Kalshi under state gambling laws. The federal agency said prediction markets fall under its jurisdiction, not state-level gaming regulators.

Ohio Challenges Kalshi Over Sports Betting Claims

Ohio officials filed a complaint against Kalshi earlier in 2025, accusing the platform of operating as an unlicensed sports betting service. State authorities, including Ohio Casino Control Commission Executive Director Matthew Schuler, argued that Kalshi’s event contracts resembled illegal sports wagering.

In March, a federal judge denied Kalshi’s request for a preliminary injunction, stating there was not enough evidence to prove Congress intended to override state gambling laws.

CFTC Pushes Back Against State Oversight

CFTC Chair Michael Selig criticized that interpretation, arguing that prediction markets operate across state borders and require national oversight. According to the agency, allowing states to regulate these platforms separately could weaken a unified federal market structure.

Growing Legal Battle Over Prediction Markets

The Ohio dispute is part of a broader campaign by the CFTC, which has recently challenged actions in states including New York, Illinois, Wisconsin, Arizona, and Connecticut. Meanwhile, several state attorneys general continue arguing that prediction platforms must follow local consumer protection and gambling laws.