A panel of judges on the U.S. Sixth Circuit Court of Appeals ruled that prediction market platform Kalshi’s sports event contracts are not swaps and are therefore subject to state gambling regulation rather than Commodity Futures Trading Commission rules. According to Odaily, the ruling concerns two lawsuits Kalshi filed against regulators in Ohio and Tennessee.

Kalshi sought injunctions to block both states from pursuing legal action against it. A federal court in Ohio rejected the request, while a federal court in Tennessee granted it.