Kalshi maintains New Jersey sports markets under preliminary court injunction

Prediction market platform Kalshi is keeping its sports contracts available in New Jersey under a preliminary injunction, ReadWrite reported. The legal protection remains active as New Jersey asks the Supreme Court to clarify whether state authorities can enforce local gambling laws against Kalshi's sports markets. [1][3]

The legal conflict centers on the intersection of federal regulatory oversight and state authority, according to ReadWrite. Separately, six distinct arguments have been raised in Kalshi's ongoing Supreme Court fight, Gambling Insider reported. [1][2]

Federal regulators are also considering structural changes for event markets, ReadWrite reported. On Oct. 9, the Commodity Futures Trading Commission proposed an amendment to classify contracts linked to sports, politics, culture, and weather as swaps. The agency stated that exchange-based order books distinguish these markets from traditional sports betting. [1]

The dispute follows previous regulatory pressure on prediction platforms across state jurisdictions. As FTMQ Startups reported earlier, Coinbase Financial Markets previously agreed to wind down sports event contracts traded on Kalshi and other platforms in Michigan following an agreement with state gaming regulators. [6]

Neither the proposed rule changes from federal regulators nor the pending Supreme Court petition have resolved the broader jurisdictional debate between state gambling regulators and federally regulated event exchanges, ReadWrite reported. [1]