The U.S. Supreme Court on October 19, 2026, granted the federal government's petition in Department of Justice v. McNutt, agreeing to decide whether an 1868 law banning the production of distilled spirits at home is a valid exercise of Congress's taxing power. The Fifth Circuit struck the ban down in a suit by the Hobby Distillers Association, while the Sixth Circuit upheld it in a separate case.
A unanimous Sixth Circuit panel ruled that state regulators in Ohio and Tennessee can enforce gambling laws against Kalshi's sports prediction markets. Judge Gibbons wrote that Kalshi failed to prove event contracts are statutory swaps under CFTC exclusive jurisdiction, and alternatively held the Commodity Exchange Act does not preempt state gaming statutes. The court affirmed denial of an Ohio injunction and vacated Tennessee injunctive relief.