Kalshi and New Jersey regulators set for appeals court clash

KalshiEX LLC (Kalshi), the predictions provider, is set to go head-to-head with the New Jersey Casino Control Commission (the Commission) in the court of appeals.

Both parties have prepared statements, which will be heard in the United States Court of Appeals for the Third Circuit on September 10, 2025.

Kalshi V New Jersey

We have long reported the legal tangles between prediction markets and state regulators, but this particular appeal hearing focuses on the saga involving the state of New Jersey.

Kalshi had won a battle in the ongoing war between prediction markets and the U.S. states, which have constantly challenged their legitimacy as commercially regulated businesses by the Commodity Futures Trading Commission (CFTC).

New Jersey regulators were left licking their wounds after the presiding Judge Edward S. Kiel ruled in favour of Kalshi in April 2025, saying, “I am persuaded that Kalshi’s sports-related event contracts fall within the CFTC’s exclusive jurisdiction and am unconvinced by defendants’ arguments to the contrary.”

Following their decisive legal victory, which is one of many court cases across the nation, Kalshi is now appearing to hear the appellate case against Judge Kiel’s motion.

Kalshi faces a prepared statement from New Jersey regulators

According to legal experts like Daniel Wallach, the appeal against the Kalshi decision is scheduled for a hearing around 11 am in the courtroom, as indicated in his social media post.

Busy day at the 3rd Circuit tomorrow.

New Jersey v. Kalshi is one of 4 cases being argued in the Maris courtroom at 9:30 am.

And, no, not all at once.

Kalshi is the last one being argued.

At 30 minutes per case, the Kalshi oral argument should start at around 11:00 am. pic.twitter.com/RYk4roVCiC

— Daniel Wallach (@WALLACHLEGAL) September 9, 2025

“New Jersey v. Kalshi is one of 4 cases being argued in the Maris courtroom at 9:30 am,” said Wallach. “Kalshi is the last one being argued. At 30 minutes per case, the Kalshi oral argument should start at around 11:00 am.”

Wallach continued to analyse the prepared statements of both parties, commenting that New Jersey’s complaint surrounds the Commodity Exchange Act, which the CFTC governs.

The state regulator’s preamble presents the argument, “Whether the district court erred in concluding that the Commodity Exchange Act likely preempts New Jersey’s sports gambling laws such that only the Commodity Futures Trading Commission can regulate Appellee’s sports event contracts.”

Kalshi’s statement refutes this, saying the decision of the district court and Judge Kiel was “correct.” The prepared argument also highlights that “federal law preempts New Jersey law as applied to regulating trading on designated contract markets subject to the CFTC’s ‘exclusive jurisdiction.”

Regardless of the outcome in the United States Court of Appeals for the Third Circuit, Kalshi and New Jersey will never be in agreement on the validity of prediction markets, but this will either wrap up the saga of provider v. the Garden State or just leave room for another chapter.

Featured image: Kalshi

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