New Jersey cannot regulate Kalshi's prediction market, US appeals court rules

April 6 (Reuters) - A federal appeals court on Monday ruled that New Jersey gaming regulators cannot prevent Kalshi from allowing people in the state to use its prediction market to place financial bets on the outcome of sporting events.

A three-judge panel of the Philadelphia-based 3rd U.S. Circuit Court of Appeals sided 2-1 with Kalshi in finding that the Commodity Exchange Act governed the sports-related event contracts it offers on its platform and as a result preempts state law.