A federal appeals court has confirmed that New Jersey is unable to regulate sports bets on prediction markets due to the exclusive jurisdiction held by the US Commodity Futures Trading Commission (CFTC).
Kalshi, a platform registered with the CFTC as a designated contract market (DCM), previously secured a preliminary injunction against the state's Division of Gaming Enforcement, which the court upheld in a 2-1 decision.
The appeals court noted that the CFTC's authority under the Commodity Exchange Act supersedes New Jersey's gambling regulations, specifically addressing the distinction between regulating all sports gambling and trading on federally designated markets.