Appeals court blocks New Jersey from shutting down Kalshi's sports markets
CoinDesk
The Third Circuit Court of Appeals ruled federal law preempts New Jersey from banning Kalshi’s sports-related event contracts.Summary
In a 2-1 decision, the Third Circuit Court of Appeals ruled that New Jersey cannot enforce state gambling laws against the prediction market provider Kalshi. The court determined that Kalshi's sports-related event contracts fall under the federal Commodity Exchange Act, which preempts state-level restrictions. While dissenting Judge Jane Roth argued these products function as sports gambling, the majority affirmed that the Commodity Futures Trading Commission (CFTC) maintains oversight, as it has not deemed these contracts contrary to public interest. This ruling provides a significant legal victory for prediction market operators currently facing various state-level enforcement actions across the U.S.
(Source：CoinDesk)