Kalshi's appeal to the U.S. Court of Appeals for Veterans Claims is pending.

What's the story: how did the U.S. Court of Appeals for the Sixth Circuit rule?

Kalshi lost an appeal over the regulation of sporting event contracts after the U.S. Court of Appeals for the Sixth Circuit ruled that Ohio and Tennessee could regulate Kalsha's sports contracts under state law.

The case thus became an issue over the division of regulatory powers in the United States between federal agencies and local governments, when it was argued whether or not a sports event contract that Kalshi offered to market is a product for which only one federal agency has jurisdiction.

Why it matters: Sports event promises are not sweepstakes under CEA rules.

In its ruling, the U.S. Court of Appeals for the Sixth Circuit held that Kalshi's sporting event contract was not in compliance with the Commodity Exchange Act.

As such, Kalshi's sporting event contract is not subject to the exclusive jurisdiction of the US Commodity Futures Trading Commission (CFTC).

Importantly, the fact that a product is classified as an "event contract" does not automatically exempt it from state regulation; if a court finds that it isn't, then under U.S. law, the states in which Kalshi operates still have room to enforce their laws.

Temporary restraining order: Ohio upheld, Tennessee suspended

The U.S. Court of Appeals for the Sixth Circuit upheld an Ohio federal court order that denied a temporary restraining order

Meanwhile, the U.S. Court of Appeals for the Sixth Circuit overturned an earlier temporary restraining order that a federal court in Tennessee had previously granted

The practical result was that Kalshi could no longer rely on Tennessee's temporary restraining order as a protective shield during legal proceedings, and the states of Ohio and Tennessee had more leeway to pursue state lawsuits over products offered by KALSHI.

Effect on Thai readers: Separating foreign and domestic markets

For Thai readers, this case does not directly rule that sports event contracts are illegal in all jurisdictions but reflects the importance of defining a product.

Whether an agency or a court considers event contracts to be profit-making, financial or gambling contracts, consumer protection, taxation, disclosure and disability prevention are different.

Platforms that offer services in Thailand must be subject to the regulation of the SEC (Thailand) and related regulations, such as Bitkub doing business in Thailand and prices quoted in baht ( THB ). Readers who follow foreign platforms should therefore distinguish between U.S.-regulated, Thai-regulated and protection provided by each legal system.

What the reader needs to understand before interpreting a story.

This news is not an immediate authorization for Kalshi to do business in Ohio and Tennessee, and it's not a ban on Kalsha everywhere.

But it's a finding that the states of Ohio and Tennessee can regulate Kalshi sports event contracts under state law, as long as Kalsha's sports event contract is not an over-the-counter (OTC) swap. According to the Commodity Exchange Act, it does not fall under the exclusive jurisdiction of the CFTC.

The issue to be monitored is how each state will enforce the rules and how Kalshi will further customize product categories or market access in those states.

This is court-ordered information, not investment advice.