The U.S. court rules that New Jersey has no authority to restrict Kalshi's sports prediction contracts.

ME News, April 7 (UTC+8): the United States Third Circuit Court of Appeals ruled that Kalshi’s offering of sports-related event contracts in New Jersey is not subject to state gambling regulation, confirming that federal regulation takes priority. In a 2-1 decision, the court held that transactions on designated contract markets (DCMs) regulated by the Commodity Futures Trading Commission (CFTC) fall under federal exclusive jurisdiction, and New Jersey has no authority to prevent such products from being offered.

This case arose after Kalshi filed a lawsuit following “cease-and-desist orders” from multiple states. New Jersey argued that it violated state gambling laws, but the court found that the Commodity Exchange Act already 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. (Source: ODAILY)