Appeals court blocks New Jersey from shutting down Kalshi's sports markets
CoinDesk·6h ago·Positivity
What Happened
A federal appeals court ruled 2-1 Monday that New Jersey cannot ban prediction market provider Kalshi. The Third Circuit Court determined Kalshi's sports contracts fall under federal Commodity Exchange Act jurisdiction, not state gambling laws. The CFTC has not filed enforcement actions against Kalshi's sports contracts. One dissenting judge argued the products constitute sports gambling. Multiple states are pursuing legal actions against prediction market platforms including Kalshi and Polymarket.
Key Entities
KalshiNew JerseyThird Circuit Court of AppealsCFTCCommodity Exchange ActPolymarketMichael ChagaresJane Roth