Kalshi Keeps New Jersey Sports Contracts Under Court Protection
Kalshi New Jersey sports contracts remain available under a preliminary injunction as the CFTC proposal and Supreme Court petition proceed. The post Kalshi Keeps New Jersey Sports Contracts Under Court Protection appeared first on ReadWrite .
The CFTC is proposing clearer rules for event contracts as New Jersey seeks Supreme Court review of its ability to enforce gambling laws against Kalshi’s sports markets. The measures aim to clarify federal oversight and state authority. The CFTC's proposed amendment classifies sports, politics, culture, and weather contracts as swaps due to their exchange-based structures, distinct from ordinary betting.
Chairman Michael S. Selig asserts the Commodity Exchange Act grants his agency exclusive regulatory authority. This proposal, however, remains open to public comment and has not been finalized. New Jersey's interim final rule maintains exclusion for qualifying casino games and sportsbook wagers when operated under state or tribal authorization and governed by relevant gambling laws.
This distinction between event contracts and conventional wagers is crucial for the CFTC's approach. Kalshi can currently offer sports contracts in New Jersey under a preliminary injunction, as the Third Circuit upheld this protection, finding Kalshi had a reasonable chance of proving federal law supersedes state restrictions. New Jersey's Supreme Court petition questions whether federal commodities law prevents states from regulating sports bets on CFTC-registered markets.
While the court has not agreed to hear the case, the injunction and Kalshi’s temporary protection remain in place.
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