The Commodity Futures Trading Commission (CFTC) filed an amicus brief Tuesday in the lawsuit that pits Kalshi against the Ohio Casino Control Commission (OCCC). The filing comes as the CFTC further pursues its efforts to enforce exclusive jurisdiction over prediction markets.
In an official press release Tuesday, CFTC Chairman Mike Selig says that “the federal district court in Ohio took an improperly narrow view of the Commission’s jurisdiction, and we are asking the Court of Appeals to correct that error.”
The comment is in reference to the Ohio District Court’s ruling in favor of the state’s enforcement against Kalshi. Selig adds that the CFTC “will not allow overzealous state governments to undermine the agency’s longstanding authority over these markets.”
The original lawsuit, filed by Kalshi against Ohio Casino Control Commission executive director Matthew T. Schuler, has been received by the US Court of Appeals for the Sixth District (located in Cincinnati) for expedited appeal. Back in April, the appeals court denied Kalshi’s plea for injunctive relief – but also noted that the argument backing the preemptive nature of federal law over state jurisdiction shares merit with the views of states.
READ: Kalshiex LLC v. Matthew T. Schuler (Date of Origin: October 9, 2025)
The Ohio District Court’s ruling, filed on March 10th of this year, has paved the way for Ohio gaming regulators to pursue enforcement action against the prediction market exchange.
On April 14th, the OCCC announced a $5 million fine against Kalshi, claiming that the platform continues to offer unlicensed sports betting in Ohio through its offering of sports-related contracts to individuals within the state.
Kalshi, along with the CFTC, has maintained that prediction market products (even those that are tied to sports contests) are already regulated by the Commodity Futures Trading Commission.
For its part, the CFTC has filed legal action against five states (Connecticut, Arizona, Illinois, Wisconsin, and New York). The federal authority claims that states are inappropriately attempting to enforce state gambling laws on products that fall under the sole regulatory discretion of the CFTC.
The amicus brief filing by the CFTS, reaffirming its position of being the exclusive regulator of prediction markets, comes just one day after the AGA reconfirmed its own stance – backing states and tribes against the exchanges. The threat that prediction markets pose to tribal and state gaming authorities is “existential,” according to the American Gaming Association.
Meanwhile, Tuesday’s amicus brief filing by the CFTC signals that it will actively pursue its own position. The ongoing legal battle, which pits two opposing interests against each other, is destined for the US Supreme Court, according to many legal experts.
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