A federal appeals court rules New Jersey cannot block Kalshi users in the state from sports-related event contracts, finding CFTC has exclusive jurisdiction
A federal appeals court ruled on Monday that New Jersey gaming regulators cannot prevent Kalshi from allowing people in the state …
Reuters Nate Raymond
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Discussion
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@jacobrobinsonjd
Jacob Robinson
on x
One of the many challenges in this case: The Dodd-Frank Act amended the CEA to give the CFTC **discretionary power** to review and prohibit certain types of contracts, including ... Gaming. The CFTC exercised this discretion to write Rule 40.11(a)(1), which created a
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@sam_mcquill
Sam McQuillan
on x
Kalshi scores its biggest win yet: a split appellate decision holding that sports event contracts (85% of its business) likely fall under federal jurisdiction, noting the CFTC has authority to stop those contracts but hasn't. The dissent called them “virtually indistinguishable […
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@wallachlegal
Daniel Wallach
on x
Similar CA3 split decision in NCAA v. Christie sports gambling case led to granting of rehearing en banc before the full court.
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@wallachlegal
Daniel Wallach
on x
Judge Roth dissent: “I would also hold that conflict preemption does not apply because Kalshi is not precluded from complying with both New Jersey and federal law, and because New Jersey's regulations do not undermine the congressional objectives behind the Act.” [image]
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@wallachlegal
Daniel Wallach
on x
Judge Roth dissent: “These offerings are virtually indistinguishable from the betting products available on online sportsbooks, such as DraftKings and FanDuel.” [image]
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@wallachlegal
Daniel Wallach
on x
Big win for Kalshi at the Third Circuit, but split decision means possible rehearing en banc.
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@wallachlegal
Daniel Wallach
on x
Judge Roth dissent: “I see Kalshi's actions as a performative sleight meant to obscure the reality that Kalshi's products are sports gambling. Because Kalshi is facilitating gambling, it can be subjected to state regulation.” [image]
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@mansourtarek_
Tarek Mansour
on x
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. [image]
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@apartovi
Ali Partovi
on x
Kalshi's strategy of complying with U.S. federal law is working out quite well.
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@rvangrack
Ryan VanGrack
on x
Huge win for @Kalshi (and all PMs) in the 3rd Circuit. This is the first appellate ct to weigh in and sets important precedent for related litigation. Key takeaways: 1)CFTC has exclusive jurisdiction over swaps 2)Sports event contracts are swaps 3)Enforcing state gambling laws [i…
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@adamscochran
Adam Cochran
on x
I've said it multiple times already, no matter what side you're on in the Prediction Markets debate the law is clear. CEA (especially its Dodd-Frank changes) make clear the CFTC's regulatory authority, and anyone arguing otherwise is doing so at the behest of the gambling lobby.
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r/law
r
on reddit
New Jersey cannot regulate Kalshi's prediction market, US appeals court rules