New Jersey cannot regulate Kalshi’s prediction market, federal appeals court rules

Commodity Futures Trading Commission has exclusive jurisdiction over sports event contracts, a ‘big win’ for Kalshi

• Sign up for the Breaking News US email to get newsletter alerts in your inbox

A federal appeals court ruled on Monday that New Jersey gaming regulators cannot prevent Kalshi from allowing people in the state to use its prediction market to place financial bets on the outcome of sporting events.

A three-judge panel of the Philadelphia-based third US circuit court of appeals ruled 2-1 in finding that the US Commodity Futures Trading Commission has exclusive jurisdiction over the sports-related event contracts that Kalshi allows people to trade on its platform.