# Federal Judge Scrutinizes Legality of Kalshi's Sports-Based Prediction Markets

*Author: Jack Inabinet*
*Published: Mar 10, 2026*
*Source: https://www.bankless.com/read/news/federal-judge-scrutinizes-legality-of-kalshis-sports-based-prediction-markets*

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Ruling for the U.S. District Court of Southern Ohio, Eastern Division, Chief Judge Sarah D. Morrison has denied Kalshi's motion for a preliminary injunction to prevent enforcement action from Ohio's gaming regulators.

### What's the Scoop?
- **No Evidence:** In a [decision](https://storage.courtlistener.com/recap/gov.uscourts.ohsd.306374/gov.uscourts.ohsd.306374.69.0.pdf) published yesterday, Chief Judge Morrison expressed skepticism of whether the Commodity Exchange Act (the governing rulebook for commodity markets in America) allows prediction markets to circumvent state-level sports gambling laws, writing, "History reveals no evidence that Congress intended to preempt state sports gambling laws."
- **Motion Denied: **Ohio now joins federal courts in Massachusetts and Nevada, which have also rejected Kalshi’s request for a preliminary injunction. In a comment to *The Block*, a Kalshi spokesperson [noted](https://www.theblock.co/post/393058/history-reveals-no-evidence-congress-intended-preempt-gambling-laws-judge-says-kalshi-case) that the Ohio ruling diverges from a recent Tennessee order [permitting](https://www.coindesk.com/policy/2026/01/10/tennessee-orders-kalshi-polymarket-and-crypto-com-to-cease-sports-betting-contracts) a similar injunction, and confirmed the company intention to promptly appeal.

> BREAKING: Ohio federal court denies Kalshi’s motion for preliminary injunction against state gaming regulators, determines that the CEA does not govern sports event contracts. Joins Maryland, Massachusetts and Nevada courts in rejecting Kalshi’s federal preemption argument. [pic.twitter.com/x9brj2e5of](https://t.co/x9brj2e5of)— Daniel Wallach (@WALLACHLEGAL) [March 9, 2026](https://twitter.com/WALLACHLEGAL/status/2031079763696091232?ref_src=twsrc%5Etfw)
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