{"id":1868905,"date":"2026-04-06T21:44:48","date_gmt":"2026-04-06T18:44:48","guid":{"rendered":"https:\/\/analyse.optim.biz\/?p=1868905"},"modified":"2026-04-06T21:44:48","modified_gmt":"2026-04-06T18:44:48","slug":"new-jersey-has-no-right-to-ban-kalshis-prediction-market-us-appeals-court-rules","status":"publish","type":"post","link":"https:\/\/analyse.optim.biz\/?p=1868905","title":{"rendered":"New Jersey has no right to ban Kalshi&#8217;s prediction market, US appeals court rules"},"content":{"rendered":"<p>[analyse_image type=&#8221;featured&#8221; src=&#8221;https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/zwc.5SlWtaVOj7z6o5WHPg&#8211;\/YXBwaWQ9aGlnaGxhbmRlcjt3PTEyMDA7aD04MDA-\/https:\/\/s.yimg.com\/os\/creatr-uploaded-images\/2026-03\/ce06c6f0-2a10-11f1-bfab-b53153a50d7e&#8221;]<\/p>\n<article id=\"article-bbb9435d-df4d-4397-8e51-e117d6da4cd7\">\n<div>\n<div class=\"mx-auto md:px-10 md:max-w-[1220px]\">\n<nav class=\"prestige-breadcrumb relative mx-4 md:mx-0\" aria-label=\"breadcrumbs\">\n<ol class=\"no-scrollbar overflow-scroll whitespace-nowrap text-battleship\">\n<li class=\"inline\">\n<li class=\"inline-block cursor-default last:pr-10 md:last:pr-20 font-bold\">Big tech<\/li>\n<\/ol>\n<\/nav>\n<header class=\"mb-4 px-4 md:mb-6 md:px-0\">\n<h1 class=\"layout-h1 my-2 font-bold leading-tight\">New Jersey has no right to ban Kalshi&#8217;s prediction market, US appeals court rules<\/h1>\n<h2 class=\"my-2 text-[18px] font-light leading-5 md:max-w-[660px] md:text-[20px]\/[28px]\">It&#8217;s the first federal ruling on prediction markets like Kalshi and Polymarket, but it won&#8217;t be the last.<\/h2>\n<div class=\"flex-col items-start lg:flex lg:flex-row lg:items-center lg:justify-between mt-6\">\n<div class=\"relative md:mr-[10px]\">\n<div class=\"flex items-center\">\n<div class=\"flex mr-2\">\n<div class=\"shrink-0 cursor-pointer inline-block size-[42px] lg:size-[48px]\"><img decoding=\"async\" alt role=\"img\" loading=\"lazy\" class=\"size-full rounded-full object-cover object-center shadow-[0_0_0_2px_#ffffff]\" src=\"https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/qYxoYGj1ulyB_u90P9pMbg--\/YXBwaWQ9aGlnaGxhbmRlcjt3PTgwO2g9ODA-\/https:\/\/o.aolcdn.com\/images\/dims?image_uri=https%3A%2F%2Fo.aolcdn.com%2Fimages%2Fdims%3Fimage_uri%3Dhttps%253A%252F%252Fo.aolcdn.com%252Fimages%252Fdims%253Fimage_uri%253Dhttps%25253A%25252F%25252Fs.yimg.com%25252Fos%25252Fcreatr-uploaded-images%25252F2023-02%25252F06245e60-a5af-11ed-affc-21021796d363%2526compress%253D1%2526progressive%253D1%2526quality%253D75%2526client%253Dhawkeye%2526signature%253D28de5d2f5265b92c151f2edde363a0010a6f5566%26compress%3D1%26progressive%3D1%26quality%3D75%26client%3Dhawkeye%26signature%3D5099c6962d2eba19c61f7657e00946992473ce27&amp;compress=1&amp;progressive=1&amp;quality=75&amp;client=hawkeye&amp;signature=8eeb9f157f60b7d94a1edf731739b1788bbbb635\"><\/div>\n<\/div>\n<div class=\"inline-block\">\n<div class=\"w-max text-sm\/5 font-semibold lg:!flex flex items-center\">\n<div class=\"flex flex-col\">\n<div class=\"flex w-max items-center\">Jessica Conditt<\/div>\n<p><span class=\"font-normal sm:before:inline-block\">Senior Editor<\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"lg:hidden\">\n<div class=\"text-xs text-dolphin dark:text-shark md:text-sm\/5 pt-4\">\n<div class=\"inline-block\"><time datetime=\"2026-04-06T21:44:48.000Z\">Mon, April 6, 2026 at 9:44 PM UTC<\/time><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"ml-0 mt-4 flex items-center lg:ml-3 lg:mt-0\">\n<div class=\"ml-0 mr-2\">\n<div class=\"relative flex\">Add Engadget on Google<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"hidden lg:block\">\n<div class=\"text-xs text-dolphin dark:text-shark md:text-sm\/5 pt-4\">\n<div class=\"inline-block\"><time datetime=\"2026-04-06T21:44:48.000Z\">Mon, April 6, 2026 at 9:44 PM UTC<\/time><\/div>\n<\/div>\n<\/div>\n<\/header>\n<\/div>\n<div class=\"grid grid-cols-1 gap-x-8 lg:gap-x-0 mx-auto md:px-10 md:max-w-[1220px] md:grid-cols-[[main-start]_1fr_[main-end_right-start]_min-content_[right-end]] lg:!gap-x-8\">\n<div class=\"md:col-main\" data-i13n-boundary=\"true\">\n<div>\n<div>\n<div>\n<div class=\"grid grid-cols-[[fullbleed-start_body-start]_minmax(auto,750px)_[body-end_fullbleed-end]]\">\n<figure class=\"relative col-body mb-4\">\n<div class=\"relative overflow-hidden fig-image-round left-1\/2 w-screen -translate-x-1\/2 md:left-0 md:w-auto md:translate-x-0\"><img decoding=\"async\" alt class=\"object-cover object-center\" src=\"https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/I6u6XGlHllJAYsdZ6MQTqQ--\/YXBwaWQ9aGlnaGxhbmRlcjt3PTEyNDI7aD04Mjg-\/https:\/\/s.yimg.com\/os\/creatr-uploaded-images\/2026-03\/ce06c6f0-2a10-11f1-bfab-b53153a50d7e\"><\/div><figcaption class=\"relative text-[0.875rem]\/[1.25rem] figure-caption mt-1 line-clamp-2 mt-2.5 md:mt-2 pr-2.5\">\n<div><span>Cheng Xin via Getty Images<\/span><\/div>\n<\/figcaption><\/figure>\n<\/div>\n<\/div>\n<div class=\"grid grid-cols-article-mobile md:grid-cols-article lg:max-w-[750px] drop-cap\" data-article-body=\"true\">\n<p class=\"col-body mb-4 leading-7 text-[18px] md:leading-8 break-words min-w-0 charcoal-color\">Kalshi can&#8217;t be stopped in New Jersey. A 3rd US Circuit Court of Appeals panel ruled on Monday that New Jersey has no authority to regulate Kalshi&#8217;s prediction market allowing people to bet on the outcome of sports events. That power rests with the Commodity Futures Trading Commission, the panel ruled 2-1.<\/p>\n<p class=\"col-body mb-4 leading-7 text-[18px] md:leading-8 break-words min-w-0 charcoal-color\">The CFTC is headed by President Donald Trump appointee Michael Selig, who vocally and actively supports prediction markets like Kalshi and Polymarket, calling them &#8220;exciting products.&#8221; The Trump family agrees: Donald Trump Jr. is a paid adviser to Kalshi and an unpaid adviser to Polymarket, and Truth Social, which is run by the Trump Media and Technology Group, is set to start a prediction market of its own.<\/p>\n<p class=\"col-body mb-4 leading-7 text-[18px] md:leading-8 break-words min-w-0 charcoal-color\">Online prediction markets are an emerging phenomenon that allow users to bet on the outcome of basically anything, from local athletic competitions to lethal military invasions. Though they&#8217;re new, these marketplaces have already shown evidence of insider trading on an extreme scale, with suspicious bets and big payouts tied to the US and Israel&#8217;s military strikes in Iran, and also the US&#8217; brief invasion in Venezuela. According to blockchain analyst DeFi Oasis, fewer than 0.04 percent of Polymarket accounts captured more than 70 percent of profits, totaling $3.7 billion.<\/p>\n<div class=\"col-fullbleed mb-4 bg-marshmallow pb-5 dark:bg-ramones md:invisible md:mb-0 md:h-0 md:overflow-hidden md:pb-0\">\n<div class=\"py-2 text-center text-xs uppercase\">Advertisement<\/div>\n<div class=\"flex w-full flex-nowrap justify-center\">\n<div class=\"flex\" id=\"_R_ld97b4ilfeiv5tilbH1_\">\n<div class=\"flex size-full items-center justify-center bg-marshmallow text-center leading-3\">Advertisement<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"col-body mb-4 hidden pb-5 dark:bg-ramones md:block\">\n<div class=\"flex w-full flex-nowrap justify-center\">\n<div class=\"flex\" id=\"_R_15d97b4ilfeiv5tilbH1_\">\n<div class=\"flex size-full items-center justify-center bg-marshmallow text-center leading-3\">Advertisement<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p class=\"col-body mb-4 leading-7 text-[18px] md:leading-8 break-words min-w-0 charcoal-color\">Multiple state gaming regulators have filed legal challenges against Kalshi and Polymarket in recent months, and just last week the CFTC sued Arizona, Connecticut and Illinois over their attempts to regulate prediction markets. While each state has its own angle of attack, from election issues to underage betting, they&#8217;re all broadly claiming that prediction markets are just illegal gambling businesses. Today&#8217;s ruling marks the first federal-level decision in one of these cases and it&#8217;s in favor of the prediction markets.<\/p>\n<p class=\"col-body mb-4 leading-7 text-[18px] md:leading-8 break-words min-w-0 charcoal-color\">New Jersey sent Kalshi a cease and desist letter in 2025, claiming the service violated the state&#8217;s ban on collegiate sports betting. Kalshi escalated the situation and sued New Jersey, arguing that its sports contracts are actually swaps, a type of financial investment that&#8217;s (conveniently) regulated by the CFTC. A lower-court judge previously sided with Kalshi, prompting New Jersey to appeal. Two of the three judges in that appeal ruled that Kalshi&#8217;s sports-related event contracts were indeed swaps. Kalshi CEO Tarek Mansour called Monday&#8217;s ruling &#8220;a big win for the industry.&#8221;<\/p>\n<p class=\"col-body mb-4 leading-7 text-[18px] md:leading-8 break-words min-w-0 charcoal-color\">US Circuit Judge Jane Richards Roth dissented, writing that Kalshi&#8217;s &#8220;offerings were virtually indistinguishable from the \u200bbetting products available on online sportsbooks, such as DraftKings and FanDuel.&#8221;<\/p>\n<p class=\"col-body mb-4 leading-7 text-[18px] md:leading-8 break-words min-w-0 charcoal-color\">New Jersey Attorney General Jennifer Davenport has the option to ask the full 3rd Circuit to rehear the case, and the issue is also pending in several other courts.<\/p>\n<\/div>\n<div class=\"grid grid-cols-article-mobile md:grid-cols-article lg:max-w-[750px]\">\n<div class=\"commerce col-body\" data-pw=\"disclosure\">\n<div class=\"mb-7 flex items-center rounded-lg p-3 p-5 w-fit flex-col md:flex-row\">\n<p class=\"text-[12px] text-battleship dark:text-gandalf md:text-[13px]\">If you buy something through a link in this article, we may earn commission.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<aside class=\"hidden flex-none md:block col-right\">\n<div class=\"flex size-full flex-col flex-nowrap\">\n<div class=\"flex-auto\">\n<div class=\"sticky flex flex-none\">\n<div class=\"flex\" id=\"_R_1pp7b4ilfeiv5tilbH1_\">\n<div class=\"flex size-full items-center justify-center bg-marshmallow text-center leading-3\">Advertisement<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/aside>\n<div class=\"md:col-main grid grid-cols-article-mobile md:grid-cols-article lg:max-w-[750px]\">\n<div class=\"no-scrollbar col-body mx-4 mb-8 mt-2.5 overflow-x-scroll whitespace-nowrap md:mx-0 md:max-w-[750px] md:overflow-x-visible\">\n<div class=\"mx-auto max-w-screen-sm\">\n<ul class=\"inline-flex text-xs md:text-sm\">\n<li class=\"mr-6\">About our ads<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n<div class=\"grid grid-cols-article-mobile md:grid-cols-article lg:max-w-[750px] drop-cap\" data-article-body=\"true\">\n<p class=\"col-body mb-4 leading-7 text-[18px] md:leading-8 break-words min-w-0 charcoal-color\">Kalshi can&#8217;t be stopped in New Jersey. A 3rd US Circuit Court of Appeals panel ruled on Monday that New Jersey has no authority to regulate Kalshi&#8217;s prediction market allowing people to bet on the outcome of sports events. That power rests with the Commodity Futures Trading Commission, the panel ruled 2-1.<\/p>\n<p class=\"col-body mb-4 leading-7 text-[18px] md:leading-8 break-words min-w-0 charcoal-color\">The CFTC is headed by President Donald Trump appointee Michael Selig, who vocally and actively supports prediction markets like Kalshi and Polymarket, calling them &#8220;exciting products.&#8221; The Trump family agrees: Donald Trump Jr. is a paid adviser to Kalshi and an unpaid adviser to Polymarket, and Truth Social, which is run by the Trump Media and Technology Group, is set to start a prediction market of its own.<\/p>\n<p class=\"col-body mb-4 leading-7 text-[18px] md:leading-8 break-words min-w-0 charcoal-color\">Online prediction markets are an emerging phenomenon that allow users to bet on the outcome of basically anything, from local athletic competitions to lethal military invasions. Though they&#8217;re new, these marketplaces have already shown evidence of insider trading on an extreme scale, with suspicious bets and big payouts tied to the US and Israel&#8217;s military strikes in Iran, and also the US&#8217; brief invasion in Venezuela. According to blockchain analyst DeFi Oasis, fewer than 0.04 percent of Polymarket accounts captured more than 70 percent of profits, totaling $3.7 billion.<\/p>\n<div class=\"col-fullbleed mb-4 bg-marshmallow pb-5 dark:bg-ramones md:invisible md:mb-0 md:h-0 md:overflow-hidden md:pb-0\">\n<div class=\"py-2 text-center text-xs uppercase\">Advertisement<\/div>\n<div class=\"flex w-full flex-nowrap justify-center\">\n<div class=\"flex\" id=\"_R_ld97b4ilfeiv5tilbH1_\">\n<div class=\"flex size-full items-center justify-center bg-marshmallow text-center leading-3\">Advertisement<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"col-body mb-4 hidden pb-5 dark:bg-ramones md:block\">\n<div class=\"flex w-full flex-nowrap justify-center\">\n<div class=\"flex\" id=\"_R_15d97b4ilfeiv5tilbH1_\">\n<div class=\"flex size-full items-center justify-center bg-marshmallow text-center leading-3\">Advertisement<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p class=\"col-body mb-4 leading-7 text-[18px] md:leading-8 break-words min-w-0 charcoal-color\">Multiple state gaming regulators have filed legal challenges against Kalshi and Polymarket in recent months, and just last week the CFTC sued Arizona, Connecticut and Illinois over their attempts to regulate prediction markets. While each state has its own angle of attack, from election issues to underage betting, they&#8217;re all broadly claiming that prediction markets are just illegal gambling businesses. Today&#8217;s ruling marks the first federal-level decision in one of these cases and it&#8217;s in favor of the prediction markets.<\/p>\n<p class=\"col-body mb-4 leading-7 text-[18px] md:leading-8 break-words min-w-0 charcoal-color\">New Jersey sent Kalshi a cease and desist letter in 2025, claiming the service violated the state&#8217;s ban on collegiate sports betting. Kalshi escalated the situation and sued New Jersey, arguing that its sports contracts are actually swaps, a type of financial investment that&#8217;s (conveniently) regulated by the CFTC. A lower-court judge previously sided with Kalshi, prompting New Jersey to appeal. Two of the three judges in that appeal ruled that Kalshi&#8217;s sports-related event contracts were indeed swaps. Kalshi CEO Tarek Mansour called Monday&#8217;s ruling &#8220;a big win for the industry.&#8221;<\/p>\n<p class=\"col-body mb-4 leading-7 text-[18px] md:leading-8 break-words min-w-0 charcoal-color\">US Circuit Judge Jane Richards Roth dissented, writing that Kalshi&#8217;s &#8220;offerings were virtually indistinguishable from the \u200bbetting products available on online sportsbooks, such as DraftKings and FanDuel.&#8221;<\/p>\n<p class=\"col-body mb-4 leading-7 text-[18px] md:leading-8 break-words min-w-0 charcoal-color\">New Jersey Attorney General Jennifer Davenport has the option to ask the full 3rd Circuit to rehear the case, and the issue is also pending in several other courts.<\/p>\n<\/div>\n<p>[analyse_source url=&#8221;https:\/\/www.engadget.com\/big-tech\/new-jersey-has-no-right-to-ban-kalshis-prediction-market-us-appeals-court-rules-214448284.html&#8221;]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[analyse_image type=&#8221;featured&#8221; src=&#8221;https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/zwc.5SlWtaVOj7z6o5WHPg&#8211;\/YXBwaWQ9aGlnaGxhbmRlcjt3PTEyMDA7aD04MDA-\/https:\/\/s.yimg.com\/os\/creatr-uploaded-images\/2026-03\/ce06c6f0-2a10-11f1-bfab-b53153a50d7e&#8221;] Big tech New Jersey has no right to ban Kalshi&#8217;s prediction market, US appeals court rules It&#8217;s the first federal ruling on prediction markets like Kalshi and Polymarket, but it won&#8217;t be the last. Jessica Conditt Senior Editor Mon, April 6, 2026 at 9:44 PM UTC Add Engadget on Google Mon, April [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[226,63],"class_list":["post-1868905","post","type-post","status-publish","format-standard","hentry","category-politics","tag-crawlmanager","tag-engadget-com"],"_links":{"self":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/posts\/1868905","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1868905"}],"version-history":[{"count":0,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/posts\/1868905\/revisions"}],"wp:attachment":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1868905"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1868905"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1868905"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}