Gensler says prediction markets don’t preempt state sports gambling laws in Kalshi case

Former SEC and CFTC Chair Gary Gensler argued in a Sixth Circuit Court of Appeals filing that prediction markets should not override state sports gambling regulations, backing amicus briefs opposing KalshiEx (Kalshi)’s sports-related contracts. According to CoinDesk, Gensler joined the Indian Gaming Association and Native American tribal organizations, the American Gaming Association and Better Markets in arguing Kalshi’s offerings violate state gaming rules and are not swaps under Dodd-Frank or the Commodity Exchange Act. The case stems from Kalshi’s preemptive lawsuit against Ohio after a federal judge ruled against Kalshi in March.