By Jared Mitovich

New Jersey gaming regulators can't regulate Kalshi, a federal appeals court ruled on Monday, in a win with implications for how prediction markets are run.

The court ruled that the Commodity Futures Trading Commission has exclusive jurisdiction over Kalshi's sports-related event contracts, which the state of New Jersey had argued were unregulated and in violation of state sports gambling laws.

The ruling by the Third U.S. Circuit Court of Appeals is one of the most significant decisions to-date on the legality of prediction markets and the question of whether the CFTC, a federal government agency, is the only regulator with the power to police them.

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(END) Dow Jones Newswires

April 06, 2026 15:00 ET (19:00 GMT)