The U.S. court rules that New Jersey does not have the authority to restrict Kalshi's sports prediction contracts.

SmartContractAuditor · 2026-04-06T15:56:46+00:00

The U.S. Third Circuit Court of Appeals ruled that Kalshi's offering of sports event contracts in New Jersey is not subject to state gambling regulation, affirming federal regulatory precedence and that the CFTC has exclusive regulatory authority. This ruling is viewed as a major victory by Kalshi's CEO.

SmartContractAuditor

2026-04-06 15:56:46

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Odaily Planet Daily reports: The U.S. Court of Appeals for the Third Circuit ruled that Kalshi’s offering of sports-related event contracts in New Jersey is not subject to limitations under the state’s gambling regulation, confirming regulatory priority at the federal level. By a 2-1 decision, the court held that trading on a designated contract market (DCM) regulated by the Commodity Futures Trading Commission (CFTC) falls within federal exclusive jurisdiction, and New Jersey has no authority to block the offering of the relevant products.

The case was prompted by Kalshi’s lawsuit after it previously received multi-state “cease-and-desist orders.” New Jersey argued that Kalshi violated state gambling laws, but the court said that the Commodity Exchange Act clearly grants the CFTC exclusive regulatory authority over the relevant transactions. Kalshi CEO Tarek Mansour said the ruling was a “major victory,” adding that prediction markets offer greater transparency and fairness. (The Block)

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