US EditionSports bets on prediction markets ruled to be "swaps," exempt from state laws
- On Monday, the Philadelphia-based 3rd U.S. Circuit Court of Appeals ruled 2-1 that the Commodity Futures Trading Commission holds exclusive jurisdiction over Kalshi's event contracts, preempting state gambling laws.
- Kalshi argues its event contracts qualify as 'swaps' under the Commodity Exchange Act, while states like New Jersey contend the products function as illegal sports betting subject to state licensure and gaming restrictions.
- "Congress gave the CFTC exclusive jurisdiction over trades on DCMs," CFTC spokesperson Brooke Nethercott said, affirming the ruling aligns with the agency's regulatory authority over these derivatives.
- Despite this federal victory, state enforcement remains active; a Nevada judge on Friday issued an injunction against Kalshi, and Washington is pursuing litigation to halt the company's operations.
- The Ninth Circuit will hear further arguments next week on the consolidated Nevada case, while bipartisan legislation in Congress would ban platforms like Kalshi from offering wagers on sporting events.
35 Articles
35 Articles
New Jersey cannot regulate Kalshi's prediction market, U.S. appeals court rules
The ruling marked the first time a federal appeals court has ruled on what has become the central issue in an escalating battle over the ability of state gaming regulators to police the activity of prediction market operators.
Nevada judge upholds ban on prediction market platform Kalshi
A Nevada judge has upheld a statewide ban on prediction market platform Kalshi offering sports-related contracts, siding with regulators who argue the company’s products amount to unlicensed gambling. First Judicial District Court Judge Jason Woodbury granted a preliminary injunction requested by the Nevada Gaming Control Board, extending an earlier temporary restraining order that blocked Kalshi from operating in the state. The ruling prevent…
New Jersey has no right to ban Kalshi's prediction market, US appeals court rules
Kalshi can'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'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. The CFTC is headed by President Donald Trump appointee Michael Selig, who vocally and actively supports prediction markets like Kalshi and P…
Covington-Maple Valley Reporter
WA clashes in court with prediction market platforms Kalshi and Robinhood
Washington sued the online prediction market platform Kalshi last month with claims that the company is violating state gambling laws.
Kalshi Scores Win As Appeals Court Rules States Can't Block Sports Prediction Markets - Flutter Entertain
The Third Circuit ruled 2-1 that federal law preempts New Jersey's gambling laws, marking the first federal appeals court decision on whether states can regulate prediction markets. Importance Rank: 1
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