The U.S. court rules that New Jersey does not have the authority to restrict Kalshi's sports prediction contracts.

ME News report. On 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 the primacy of federal oversight. In a 2-1 decision, the court held that trading on designated contract markets (DCM) regulated by the Commodity Futures Trading Commission (CFTC) falls under exclusive federal jurisdiction, and New Jersey has no authority to prevent the offering of such products.

The case stems from Kalshi’s lawsuit after it previously received multi-state “cease-and-desist” orders. New Jersey argued that it 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 said the ruling was a “major victory” and stated that prediction markets offer greater transparency and fairness. (Source: ODAILY)