New Jersey has no right to ban Kalshi's prediction market, US appeals court rules
Engadget • • business
Key Points:
- A 3rd US Circuit Court of Appeals panel ruled that New Jersey cannot regulate Kalshi's prediction market, stating that regulatory authority lies with the Commodity Futures Trading Commission (CFTC).
- The CFTC, led by Michael Selig, a Trump appointee supportive of prediction markets, oversees platforms like Kalshi and Polymarket, which allow users to bet on various event outcomes, including sports and political events.
- Prediction markets have faced scrutiny for alleged insider trading and profit concentration, with blockchain analysis showing a small fraction of accounts earning the majority of profits.
- Several states have attempted to regulate or shut down prediction markets, claiming they constitute illegal gambling, but recent federal rulings have favored the markets, marking a significant legal precedent.
- New Jersey's legal challenge against Kalshi, based on collegiate sports betting restrictions, was overruled by the appeals panel, though dissenting opinions and further legal actions remain possible.
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