Svmuu News The U.S. Court of Appeals for the Third Circuit ruled that Kalshi's offering of contracts related to sporting events in New Jersey is not subject to state gambling regulations, affirming federal regulatory preemption. The court, in a 2-1 decision, held that trading on a designated contract market (DCM) regulated by the Commodity Futures Trading Commission (CFTC) falls under exclusive federal jurisdiction, and New Jersey lacks the authority to block the offering of such products.
The case stemmed from a lawsuit filed by Kalshi after receiving "cease and desist" orders from multiple states. New Jersey argued that Kalshi violated state gambling laws, but the court found that the Commodity Exchange Act explicitly grants the CFTC exclusive regulatory authority over such transactions. Kalshi CEO Tarek Mansour called the ruling a "major victory," stating that prediction markets offer greater transparency and fairness. (The Block)