The Sixth Circuit just handed Ohio and Tennessee a win, ruling their gambling laws can apply to Kalshi's sports contracts. Kalshi argued that patchwork state compliance clashes with its status as a federally regulated exchange, but the court wasn't buying it — geofencing, they said, is a fine workaround. This is now a second appellate loss for Kalshi's "federal preemption" defense, and it signals states are gaining real leverage over prediction markets that look and feel like sports betting.