SOUTH JERSEY (KYW Newsradio) — New Jersey is not allowed to regulate prediction markets like Kalshi. A federal appeals court ruled on Monday that prediction markets are exclusively under the jurisdiction of the U.S. Commodity Futures Trading Commission.
In the 2-1 decision, the Third Circuit Court of Appeals panel agreed with Kalshi’s argument that Congress gave exclusive jurisdiction to the CFTC.
New Jersey argued prediction markets circumvent gambling age restrictions, state taxes and other regulations that companies like DraftKings and FanDuel must abide by. One dissenting judge wrote that Kalshi’s offerings are indistinguishable from online gambling products.
This issue is also being argued at other courts, including in California and Massachusetts.
