"The Third Circuit ruled in Kalshi's favor. People use prediction markets because they're more fair, transparent, and reward being right. Free markets work. We should keep them that way. This is a big win for the industry and millions of users."
"The contract's value is determined by market forces... based on perceptions about the event's likelihood. Its market-based structure places the contracts within the scope of federally regulated derivatives."
A federal appeals court ruled in favor of Kalshi, indicating that federal law may preempt New Jersey's gambling restrictions. This decision maintains a lower court's injunction against New Jersey's enforcement of its laws. Kalshi's event contracts, which allow trading on real-world outcomes, were previously targeted by New Jersey regulators as illegal sports betting. The court found that Kalshi has a reasonable chance of success in its argument that the Commodity Exchange Act applies, classifying its contracts as federally regulated derivatives.
Read at ReadWrite
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