Court Clears Path for Kalshi in Sports Betting Showdown

A federal appeals court ruled in favor of Kalshi, allowing the platform to operate its sports-related prediction markets in New Jersey. The court determined that the Commodity Exchange Act overrides state law, despite objections from state regulators about licensing and gambling age restrictions.

In a landmark decision, a federal appeals court has ruled in favor of Kalshi, granting the platform permission to operate its sports-related prediction markets in New Jersey.

The Philadelphia-based 3rd U.S. Circuit Court of Appeals decided by a 2-1 vote that the Commodity Exchange Act preempts the state law, asserting its governance over sports event contracts offered by Kalshi.

State regulators, including those from New Jersey, previously argued that such operations violated state gambling laws. However, Kalshi maintained that its contracts, regulated as 'swaps', fall under federal jurisdiction, challenging state-imposed restrictions.

(With inputs from agencies.)