Kalshi Wins Federal Appeal Against New Jersey

A federal appeals court, the United States===United States Court of Appeals for the Third Circuit, ruled in favor of Kalshi, a prediction market platform, blocking United States===New Jersey from enforcing state gambling laws against its sports-related event contracts. The court affirmed that Kalshi's contracts are likely 'swaps' and fall under the exclusive jurisdiction of the United States===United States Commodity Futures Trading Commission (CFTC), not state regulators. This decision strengthens the United States===United States Commodity Futures Trading Commission's claim of exclusive oversight over prediction markets and sets a precedent in the ongoing national debate over their regulation. While Kalshi has faced losses in other states like United States===Nevada, United States===Maryland, and United States===Ohio, this victory in United States===New Jersey, along with wins in United States===Tennessee, highlights a fragmented legal landscape. The United States===United States Commodity Futures Trading Commission has actively supported prediction markets, even suing states like United States===Arizona, United States===Connecticut, and United States===Illinois for attempting to regulate them. The ruling could lead to a potential review by the US Supreme Court, which might re-evaluate its 2018 decision granting states authority over sports gambling.