Kalshi Wins Appeals Court Sports Contract Battle

Kalshi Wins Appeals Court Ruling Over New Jersey’s Sports Contract Crackdown

• The U.S. Court of Appeals for the Third Circuit upheld a preliminary injunction against New Jersey, preventing enforcement of state gambling laws on Kalshi’s sports-related event contracts.
• Kalshi argued that its contracts are federally regulated derivatives under the Commodity Exchange Act, not subject to state gaming laws.
• The court agreed that Kalshi’s contracts likely fall under the CFTC’s exclusive jurisdiction as they fit the definition of swaps.
• This ruling is significant as it marks a major appellate win for Kalshi in ongoing national disputes over prediction markets.
• Despite this victory, Kalshi has faced legal challenges in other states like Nevada, Maryland, and Ohio while succeeding in Tennessee.

Kalshi secured a legal victory with the Third Circuit court ruling, reinforcing its stance that its sports-related event contracts are federally regulated and not subject to New Jersey’s state gambling laws. This decision highlights ongoing national legal battles over prediction markets.