Federal appeals panel affirms CFTC oversight of Kalshi sports contracts as Nevada court extends state ban

A U.S. Court of Appeals panel on April 6 ruled that Kalshi can continue offering sports-related event contracts in New Jersey, finding those markets are subject to oversight by the Commodity Futures Trading Commission rather than state gambling regulators; the decision was a 2–1 ruling described as Kalshi’s biggest appellate win to date ^{[1] [2] [3]}.

The appeals decision bolsters the CFTC’s position that prediction markets should be regulated at the federal level and highlights tensions between federal and state authorities over where such markets fit in existing law ^{[1] [2]}.

Separately, a Nevada state judge extended a temporary ban on Kalshi’s sports-event contracts, concluding those contracts closely resemble traditional gambling and supporting a preliminary injunction sought by state regulators ^[4].

With conflicting rulings in different jurisdictions, the legal status of sports-related prediction markets remains contested and the dispute appears poised for further review at higher courts ^{[2] [4] [1]}.