US appeals court upholds preventing New Jersey enforcement against Kalshi

As states seek to regulate prediction markets, a panel of federal judges ruled in favor of Kalshi’s position that only the CFTC has jurisdiction.

A US appellate court has ruled against New Jersey gaming authorities for bringing an enforcement action against prediction market platform Kalshi over sports event contracts.

In a Monday-issued opinion, a panel of judges in the US Court of Appeals for the Third Circuit ruled 2-1 in favor of Kalshi’s argument that the company had a ”reasonable chance of success” claiming that the Commodity Exchange Act preempted state law, setting the stage for a potential battle over gaming laws in the US Supreme Court.

“This is a big win for the industry and millions of users,” Kalshi CEO Tarek Mansour said in a social media post on X.