A federal judge in Ohio has ruled that prediction market platform Kalshi must comply with state regulations on gambling. The decision was made in response to a request for a preliminary injunction from state regulators, stating that the Commodity Exchange Act does not preempt Ohio’s sports gambling laws. The company had argued that its contracts should be treated as “swaps” like those found in financial markets. However, Judge Sarah D. Morrison called this designation "absurd" and stated that history shows no evidence that Congress intended to preempt state sports gaming laws.