A federal appeals court rules New Jersey cannot block Kalshi users in the state from sports-related event contracts, finding CFTC has exclusive jurisdiction

A federal appeals court just handed prediction market platform Kalshi a major win. The ruling: New Jersey's gaming regulators have no authority to block state residents from trading sports-related event contracts on the platform.

The court found that the Commodity Futures Trading Commission holds exclusive jurisdiction over these contracts. That effectively strips state-level gaming authorities of their ability to regulate prediction markets that fall under CFTC oversight.

This is a significant precedent for Kalshi and the broader prediction market space. State regulators have increasingly tried to treat event contracts — particularly sports-adjacent ones — as gambling. This ruling draws a clear line: if the CFTC regulates it, states can't touch it.

For Kalshi, it means uninterrupted access to New Jersey users and a legal shield against similar state-level challenges elsewhere.