{"id":68892,"date":"2026-04-07T09:06:04","date_gmt":"2026-04-07T02:06:04","guid":{"rendered":"https:\/\/hbbgroup.net\/kalshi-scores-biggest-legal-win-yet-in-appeals-court-decision-against-new-jersey\/"},"modified":"2026-04-07T09:06:04","modified_gmt":"2026-04-07T02:06:04","slug":"kalshi-scores-biggest-legal-win-yet-in-appeals-court-decision-against-new-jersey","status":"publish","type":"post","link":"https:\/\/hbbgroup.net\/vi\/kalshi-scores-biggest-legal-win-yet-in-appeals-court-decision-against-new-jersey\/","title":{"rendered":"Kalshi Scores Biggest Legal Win Yet in Appeals Court Decision Against New Jersey"},"content":{"rendered":"<div>\n<div>\n<h4 color=\"#333\">In brief<\/h4>\n<ul>\n<li>Kalshi won a major appeals court ruling that its sports-related markets should be federally regulated.<\/li>\n<li>The court said oversight belongs to the CFTC, not state gambling authorities like New Jersey\u2019s.<\/li>\n<li>The decision strengthens Kalshi\u2019s position in a broader national legal battle likely headed to the Supreme Court.<\/li>\n<\/ul>\n<\/div>\n<p><span>A federal appeals court in Philadelphia handed a significant victory to Kalshi Monday, ruling that New Jersey has no claim to regulate the prediction market under existing state gambling laws.<\/span><\/p>\n<p><span>Wagers on Kalshi\u2014including those related to sports\u2014instead fall under the federal purview of the CFTC, a panel of federal appeals judges <\/span><a href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.ca3.125099\/gov.uscourts.ca3.125099.105.0.pdf\" target=\"_blank\" rel=\"nofollow external noopener\"><span>ruled<\/span><\/a><span> 2-1 on Monday.<\/span><\/p>\n<p><span>The appeals court affirmed a preliminary injunction granted last spring against New Jersey, after gambling regulators in the state sent Kalshi a cease-and-desist order. The state regulators had argued Kalshi\u2019s sports-related markets were unregistered sports bets by another name; Kalshi argued they were event contracts exclusively regulated by the CFTC.<\/span><\/p>\n<p><span>Last April, a federal judge in New Jersey sided with Kalshi, ruling New Jersey could <\/span><i><span>not<\/span><\/i><span> enforce a ban on the platform as the case proceeded to trial\u2014becuase Kalshi was likely to succeed on the merits of its case.<\/span><\/p>\n<p><span>Today, two appellate judges came to the same conclusion, affirming the judge\u2019s original ruling. They are Chief Judge Michael A. Chagares, who was appointed to the Third Circuit Appeals Court by former President George W. Bush, and Judge David J. Porter, who was appointed by President Donald Trump.<\/span><\/p>\n<p><span>The sole dissenting judge in today\u2019s ruling, Jane R. Roth, lambasted her colleagues\u2019 decision, arguing that although Kalshi\u2019s sports-related wagers are registered as event contracts, that one factor does not change their inherent nature as bets on the outcomes of sports games.<\/span><\/p>\n<p><span>\u201cThe Majority [holds] that Kalshi\u2019s registration as a DCM and branding of its wagers as sports-event contracts are acts of alchemy that transmute its products from sports gambling to futures trading,\u201d Roth dissented. \u201cI see Kalshi\u2019s actions as a performative sleight meant to obscure the reality that Kalshi\u2019s products are sports gambling.\u201d<\/span><\/p>\n<div>\n<blockquote>\n<p lang=\"en\" dir=\"ltr\">The Third Circuit ruled in Kalshi\u2019s favor.<\/p>\n<p>People use prediction markets because they\u2019re more fair, transparent, and reward being right.<\/p>\n<p>Free markets work. We should keep them that way.<\/p>\n<p>This is a big win for the industry and millions of users. <a href=\"https:\/\/t.co\/Ay0dLtgZdV\" data-wpel-link=\"internal\">pic.twitter.com\/Ay0dLtgZdV<\/a><\/p>\n<p>\u2014 Tarek Mansour (@mansourtarek_) <a href=\"https:\/\/twitter.com\/mansourtarek_\/status\/2041174495742836979?ref_src=twsrc%5Etfw\" data-wpel-link=\"internal\">April 6, 2026<\/a><\/p>\n<\/blockquote>\n<\/div>\n<p><span>Roth was appointed to the court in 1991 by former President George H.W. Bush.<\/span><\/p>\n<p>&#8220;The Third Circuit ruled in Kalshi\u2019s favor. People use prediction markets because they\u2019re more fair, transparent, and reward being right,&#8221; Kalshi co-founder and CEO Tarek Mansour <a href=\"https:\/\/x.com\/mansourtarek_\/status\/2041174495742836979?s=20\" target=\"_blank\" rel=\"nofollow external noopener\">wrote on X<\/a>. &#8220;Free markets work. We should keep them that way. This is a big win for the industry and millions of users.&#8221;<\/p>\n<p><span>Kalshi posted to Mansour&#8217;s post when reached by <\/span><i><span>Decrypt<\/span><\/i> <span>for comment on today\u2019s ruling.<\/span><\/p>\n<p><span>As a U.S. Appeals Court decision, today\u2019s ruling can only be appealed to the U.S. Supreme Court\u2014unless the 3rd Circuit opts for a rare <\/span><i><span>en banc <\/span><\/i><span>review, in which every judge on the circuit would collectively rehear the case.<\/span><\/p>\n<p><span>For over a year now, state and federal courts across the country have come to vastly differing conclusions in the jurisdictional dispute over prediction market regulation. Nevada, for instance, recently succeeded in temporarily <\/span><a href=\"https:\/\/decrypt.co\/361938\/nevada-first-state-ban-prediction-market-kalshi\" target=\"_blank\"><span>banning<\/span><\/a><span> Kalshi in the gambling-dominated state. On Friday, a state judge <\/span><a href=\"https:\/\/www.reuters.com\/world\/us\/nevada-judge-extends-ban-kalshi-operating-prediction-market-state-2026-04-03\/\" target=\"_blank\"><span>extended<\/span><\/a><span> that initial 14-day ban for another two weeks.<\/span><\/p>\n<p><span>Meanwhile, the Trump administration has aggressively argued that prediction markets should not have to comply with state gambling laws. Last week, the Trump CFTC, along with the Department of Justice, <\/span><a href=\"https:\/\/decrypt.co\/363171\/trump-admin-backs-prediction-markets-lawsuits-illinois-arizona-connecticut\" target=\"_blank\"><span>sued<\/span><\/a><span> Illinois, Arizona, and Connecticut for attempting to regulate prediction market platforms.<\/span><\/p>\n<p><span>Due to the extent of the disagreement, the matter of prediction market regulation is likely to ultimately be decided by the Supreme Court.<\/span><\/p>\n<p><i>Editor&#8217;s note: This story was updated after publication to include comments from Kalshi.<\/i><\/p>\n<div>\n<h3>Daily Debrief Newsletter<\/h3>\n<p>Start every day with the top news stories right now, plus original features, a podcast, videos and more.<\/p>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>In brief Kalshi won a major appeals court ruling that its sports-related markets should be federally regulated. The court said [&hellip;]<\/p>","protected":false},"author":5,"featured_media":68893,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[220],"tags":[],"class_list":["post-68892","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tien-dien-tu"],"acf":[],"_links":{"self":[{"href":"https:\/\/hbbgroup.net\/vi\/wp-json\/wp\/v2\/posts\/68892","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hbbgroup.net\/vi\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hbbgroup.net\/vi\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hbbgroup.net\/vi\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/hbbgroup.net\/vi\/wp-json\/wp\/v2\/comments?post=68892"}],"version-history":[{"count":0,"href":"https:\/\/hbbgroup.net\/vi\/wp-json\/wp\/v2\/posts\/68892\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hbbgroup.net\/vi\/wp-json\/wp\/v2\/media\/68893"}],"wp:attachment":[{"href":"https:\/\/hbbgroup.net\/vi\/wp-json\/wp\/v2\/media?parent=68892"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hbbgroup.net\/vi\/wp-json\/wp\/v2\/categories?post=68892"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hbbgroup.net\/vi\/wp-json\/wp\/v2\/tags?post=68892"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}