Former SEC Chairman Gary Gensler has filed an amicus brief with the Sixth Circuit Court of Appeals, asserting that prediction markets cannot override state gambling regulations. Gensler contends that federal law does not empower the CFTC to regulate sports-related prediction markets, emphasizing that the Dodd-Frank Act's definition of a swap excludes sports betting contracts. This legal stance is part of a broader case involving Kalshi, which seeks to prevent a lawsuit in Ohio. The case has attracted attention from various organizations, including the Indiana Gambling Association, which argues that sports betting markets infringe on tribal sovereignty and reduce state and tribal revenues. The American Gambling Association also highlighted the lack of distinction between sports betting and prediction markets. Meanwhile, CFTC Chairman Mike Selig maintains that event contracts traded on CFTC-regulated markets are considered swaps. The case may ultimately be decided by the Supreme Court.