Infiniti Intelligence Hourly Briefing — Oct 12, 2026 · 7:54 PM ET

Kalshi has asked the full Sixth Circuit to reconsider a ruling allowing Ohio and Tennessee to pursue regulatory action against the company over unlicensed online sports gambling, according to Bloomberg Law.

The company petitioned the Cincinnati-based court on Oct. 9 for en banc review of the three-judge panel’s Sept. 25 decision. The request seeks another hearing of a dispute over states’ authority to act against prediction-market platforms.

Kalshi challenges state authority

In its filing, Kalshi argued that the panel wrongly allowed states to take punitive action against it and other prediction-market operators, Bloomberg Law reported. The petition challenges that outcome; the available reporting does not indicate that the full court has agreed to rehear the case.

Kalshi also pointed to proposed rules unveiled on Oct. 9 by the federal Commodity Futures Trading Commission. According to Bloomberg Law, the proposals would further define “swaps” to encompass the event contracts offered by these platforms, including contracts tied to sports, politics and other occurrences.

Federal proposal enters the dispute

Kalshi presented the proposed rules as support for its challenge to the panel’s ruling. The Commodity Exchange Act defines swaps, but the supplied report does not include the remainder of its discussion of that statutory framework.

The immediate procedural question is whether the full Sixth Circuit will review the panel’s decision. Separately, the CFTC measures described in the report remain proposals, rather than finalized rules.

What it means for prediction markets

• Rehearing is not assured: Kalshi’s Oct. 9 petition asks for full-court review; it does not establish that the Sept. 25 ruling has been reversed.
• State authority remains central: The challenged decision allows Ohio and Tennessee to take regulatory action over Kalshi’s offering of unlicensed online sports gambling.
• Contract classification matters to the dispute: Kalshi is relying on the CFTC’s proposed treatment of event contracts as swaps to bolster its argument against state punitive action.

Texas prepares for a policy review

Texas Lt. Governor Dan Patrick has directed a state Senate committee to study prediction markets, according to gamblerss.com. The review puts the issue on the state’s agenda ahead of the 2027 legislative session.

The committee’s findings are expected to inform potential action during that session. The available summary identifies a study directive, rather than a decision on how Texas will treat prediction markets.

Details remain limited

The report was published on Oct 12, 2026, at 7:54 PM ET. Its full text was unavailable, leaving the supplied summary as the basis for this account.

That summary does not name the committee, outline the study’s scope or provide a deadline for its findings. It also does not identify a proposed bill or describe specific restrictions, permissions or other policy changes under consideration.

For prediction-market readers, the distinction is important: Texas is examining the issue, but the available material does not establish what action, if any, will follow in 2027.

What it means for prediction markets

• A legislative process to watch: The committee’s findings are expected to help inform potential action in the 2027 legislative session.
• No policy outcome established: The study directive alone does not indicate whether Texas will pursue restrictions, permissions or no change.
• Key information is still missing: The committee’s remit, reporting timetable and any resulting proposals would clarify the implications for prediction markets.