A US appeals court has ruled that Ohio and Tennessee can regulate Kalshi’s event contracts under their state gambling laws. The decision by the 6th US Circuit Court of Appeals adds to an ongoing disagreement among federal appeals courts over whether state authorities or the Commodity Futures Trading Commission should oversee prediction market contracts.

The court said Kalshi had not shown that its sports related contracts qualified as swaps that would fall exclusively under federal oversight. It also ruled that federal law does not prevent Ohio and Tennessee from applying their gambling regulations to the contracts.

The ruling has added to the legal uncertainty surrounding prediction markets in the United States. Other federal appeals courts have reached different conclusions on similar cases, increasing the possibility of further review by the US Supreme Court.