Bloomberg Law reports that the Sixth Circuit ruled on September 25, 2026, that Kalshi can face enforcement over alleged violations of Ohio and Tennessee sports-gambling laws. The court upheld the denial of an injunction in Ohio and lifted one blocking Tennessee regulators. CNBC reports that the panel found Kalshi had not shown its sports contracts qualified as “swaps,” a type of financial derivative under federal oversight. Even if they did, the panel held that federal law would not override the two states’ gambling laws. CNBC describes a split among appeals courts: the Third Circuit sided with Kalshi, while the Ninth Circuit ruled against it. New Jersey has sought Supreme Court review, but whether and when the justices will take up the issue remains uncertain.