An Ohio federal judge has ruled that New York-based Kalshi's prediction markets in sports amount to acts of gambling, which should come under state regulations. The company had asked for an injunction against the Ohio Casino Control Commission, which wants to stop Kalsh from operating as an "unlicensed sportsbook" that is "facilitating bookmaking" in the Buckeye State. However, U.S. District Court Judge Sarah Morrison disagreed, stating that swaps are typically a transaction involving financial instruments and measures that affect commodity prices. Sports betting companies, like FanDuel and DraftKings, have had to negotiate their way into certain states by meeting regulatory standards and paying taxes to operate there.