Kalshi wins appeal against New Jersey ban

A US appeals court has ruled that New Jersey cannot temporarily shut down Kalshi’s sports-event prediction markets, marking a significant legal win for the platform.

The Third Circuit Court found that Kalshi’s contracts fall under the federal Commodity Exchange Act, preventing the state from enforcing its own gambling laws against the company.

“Kalshi self-certified compliance with the applicable laws and regulations, so those event contracts were presumptively approved under federal law,”

The court said.

The ruling noted that the Commodity Futures Trading Commission has not taken enforcement action against Kalshi’s sports-related contracts or deemed them against the public interest.

The decision comes as multiple US states pursue legal action against prediction market platforms, arguing that such products constitute unregulated sports betting.

A dissenting judge argued the contracts resemble traditional sports gambling, highlighting ongoing legal disagreement over how these markets should be classified.

The case underscores a broader regulatory battle between federal oversight and state gambling laws, with further rulings expected as similar disputes continue across US courts.