Appeals court blocks New Jersey sports market ban

A federal appeals court has ruled that New Jersey cannot shut down Kalshi's sports prediction markets, marking a significant victory for the fintech platform. The Third Circuit Court of Appeals determined that the federal Commodity Exchange Act preempts state gambling laws, meaning Kalshi's contracts fall under federal jurisdiction. The court found that since Kalshi self-certified its sports contracts and the CFTC has not deemed them contrary to public interest, they are presumptively approved. This decision offers a reprieve for Kalshi amidst a wave of state-level enforcement actions targeting prediction markets.