Appellate Court Affirms Blocking New Jersey Enforcement against Kalshi

A US appellate court has ruled in favor of prediction market platform Kalshi, affirming a lower court's decision to block New Jersey gaming authorities from taking enforcement action against the company. The Third Circuit Court of Appeals found that Kalshi had a "reasonable chance of success" in arguing that the Commodity Exchange Act preempts state law regarding sports event contracts. The court's 2-1 decision supports Kalshi's claim that the Commodity Futures Trading Commission (CFTC) has exclusive jurisdiction over such contracts, viewing them as swaps. This ruling could lead to a significant legal battle over gaming laws, potentially reaching the US Supreme Court. In her dissent, Circuit Judge Jane Roth argued that Kalshi's products are essentially sports gambling, despite the platform's classification. This decision comes as other states also crack down on prediction markets, creating a complex regulatory landscape.

(Source：Cointelegraph)