Sports bets on prediction markets ruled to be "swaps," exempt from state laws
4 hours ago
- #Sports Betting
- #Jurisdiction
- #CFTC
- A federal appeals court ruled that New Jersey cannot regulate sports bets on prediction markets due to the CFTC's exclusive jurisdiction.
- Kalshi won a preliminary injunction against New Jersey's enforcement of state laws on sports-related event contracts, upheld by the 3rd Circuit.
- The court found that federal law preempts state laws interfering with swaps traded on CFTC-designated contract markets, including Kalshi's contracts.
- New Jersey had accused Kalshi of offering unauthorized sports wagers, violating state licensing requirements and a ban on college sports betting.