• Loading stock data...
Sunday, August 24, 2025
The biggest names in sports media. All in one room. Buy tickets now!

Kalshi Gains More Legal Momentum With Early New Jersey Win

A New Jersey federal judge ruled state regulators cannot prohibit Kalshi’s sports “prediction” market offerings while the case continues, following a similar ruling in Nevada.

United States District Court, District of New Jersey. Federal Courthouse in Newark. on Thursday Feb. 11, 2021. Newark Federal Courthouse
Imagn Images

Kalshi can continue offering sports “prediction” contracts in New Jersey while its lawsuit against the state’s gambling regulators plays out, an early legal victory that signifies the start of a winning streak for the company, which is battling regulators in multiple states.

A U.S. federal judge on Monday granted Kalshi’s motion for a temporary restraining order and preliminary injunction prohibiting New Jersey regulators from enforcing a cease-and-desist order aimed at stopping the company from listing sports event contracts, which allow users to trade on the outcome of sports events including which team will win the next game in a given NBA playoff series, who will be the “pro hockey champion,” and more. 

The judge’s decision is significant, though it does not end the suit. It essentially keeps the status quo while the case continues.

“The balancing of the factors here caution me to keep the toothpaste in the tube,” U.S. District Judge Edward S. Keil wrote in his opinion

Sara Slane, head of corporate development for Kalshi, said in an emailed statement that “we are grateful for the Court’s attention and well-reasoned opinion.”

“Once again, the decision is consistent with what we have stated from the beginning: Kalshi is firmly on the right side of the law. We look forward to a swift resolution of these cases and will continue to educate regulators and the public on the benefits of prediction markets and the stringent federal regulations under which we operate.”

Notably, the judge found Kalshi faced the prospect of “irreparable harm” if he had ruled in favor of the regulators, including through lost business. In addition, if Kalshi complied with the cease-and-desist, it would need to spend “an estimated tens of millions of dollars annually” to geolocate users, “with no guarantee of recoupment,” the judge wrote.

It may still be early in the case, but the decision is significant, especially when considering that a different federal judge, in Nevada, recently issued a similar ruling preventing regulators in that state from shuttering the sports offerings while the case moves forward.

Regulators in at least six states have sent Kalshi cease-and-desist letters: Maryland, Illinois, Montana, Nevada, New Jersey and Ohio. In addition to the suits in New Jersey and Nevada, Kalshi last week sued the Maryland Lottery and Gaming Commission. A representative for Kalshi recently declined to comment on any future legal plans.

Other states, including Kansas, Washington and Connecticut, are reportedly looking into Kalshi’s sports offerings, which have also received criticism from legal experts and multiple Native American tribes or associated organizations. The main arguments against Kalshi include that the sports event contracts are essentially sports betting, which is regulated on a state-by-state basis, and that if these offerings are allowed to continue, they’ll eat into tribe-run sports betting businesses.

A primary underlying question in the lawsuits Kalshi has filed to date is whether the Commodity Futures Trading Commission has “exclusive” jurisdiction to regulate Kalshi’s sports event contracts through a federal law called the Commodity Exchange Act, which regulates the trading of commodities like grains and oil, but also less obvious commodities, such as sports when considered in a trading context.

Judge Keil wrote in his opinion that he is “persuaded that Kalshi’s sports-related event contracts fall within the CFTC’s exclusive jurisdiction and am unconvinced by defendants’ arguments to the contrary.”

The CFTC, which under President Biden fought, and lost, a legal battle aimed at stopping Kalshi from offering event contracts on political events like the presidential election, has appeared more Kalshi-friendly under President Trump. Aware of the increasing interest in Kalshi and similar offerings, the CFTC previously announced a roundtable on the topic and solicited public comment. However, the roundtable has been cancelled, CFTC spokesperson Taylor Foy confirmed to Front Office Sports on Tuesday.

“There is no update right now on when it will be rescheduled,” Foy said in an email. “More details will be provided when available.”

A representative for the New Jersey office of the Attorney General declined to comment, citing a policy not to comment on pending litigation.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Chris ‘The Bear’ Fallica on Fox Changes, New Studio, Working With Portnoy

Fallica is in his third year as Fox’s sports betting expert.
A view of the FanDuel Sportsbook betting area at Belterra Park Cincinnati.

FanDuel Enters Prediction Markets, but With No Sports

The company is partnering with derivatives exchange CME Group.
Dec 18, 2024; Inglewood, CA, USA; UNLV Rebels defensive back Rashod Tanner (41) celebrates after defeating the California Golden Bears in the LA Bowl at SoFi Stadium.

Robinhood Reactivates Sports Contracts in NJ and NV, Sues State Regulators

The suits were filed the same day Robinhood announced new football offerings.
Jan 20, 2025; Atlanta, GA, USA; Ohio State Buckeyes running back Quinshon Judkins (1) and quarterback Will Howard (18) celebrate after a touchdown against the Notre Dame Fighting Irish during the second half the CFP National Championship college football game at Mercedes-Benz Stadium.

Robinhood to Roll Out Football Prediction Markets

The new event contracts come on the heels of Kalshi’s expanded football offerings.

Featured Today

The Honey Deuce Effect: How Tennis Perfected the Signature Cocktail

Sold every 1.5 seconds, they total more than $12 million in sales.
Dec 21, 2024; Austin, Texas, USA; Texas Longhorns quarterback Arch Manning (16) warms up as the Texas Longhorns prepare to play the Clemson Tigers in the first round of the College Football Playoffs at Darrell K Royal Texas Memorial Stadium.
August 23, 2025

Schools Are Hesitant to Allow PE Into Their Athletic Departments

Regardless of budget, schools don’t believe the risk is worth the reward.
Oct 2, 2024; Rosemont, IL, USA; Big Ten commissioner Tony Petitti speaks with the media during the 2024 Big Ten Women’s Basketball media day at Donald E. Stephens Convention Center.
August 22, 2025

‘Not Ready to Jump In’: Power 4 Commissioners Aren’t Sold on PE

Top leaders in college sports have yet to see a satisfactory proposal.
Nov 23, 2024; Minneapolis, Minnesota, USA; Penn State Nittany Lions head coach James Franklin looks at quarterback Drew Allar (15) during the first quarter against the Minnesota Golden Gophers at Huntington Bank Stadium.
August 22, 2025

Private Equity Enters College Sports—Without the Equity

As college football starts, lending agreements have become PE’s best way in.
Malik Beasley

Malik Beasley Could Still Be Charged in Gambling Probe Despite Feds Dropping..

Beasley’s lawyer is hoping his client can return to the NBA.
Feb 9, 2025; New Orleans, LA, USA; Philadelphia Eagles quarterback Jalen Hurts (1) against the Kansas City Chiefs during Super Bowl LIX at Ceasars Superdome.
exclusive
August 18, 2025

Kalshi Adds Touchdown Props, Over/Unders Amid Legal Uncertainty

The company is not cowed by its legal challenges.
August 18, 2025

Limitations on Prop Bets Supported by NBA, Players’ Union

The union is trying to combat online and in-person harassment.
Sponsored

Building A Pro League From Scratch

Front Office Sports and Gainbridge® spotlight what it takes to build a professional women’s soccer league.
Feb 5, 2025; New Orleans, LA, USA; The ESPN logo at the Super Bowl LIX media center at the Ernest N. Morial Convention Center.
August 15, 2025

New ESPN App to Feature Heavy Betting Integration

The new app launches Aug. 21.
Mar 21, 2025; Milwaukee, WI, USA; Illinois center Tomislav Ivisic (13) attempts to block Xavier guard Dailyn Swain (3) during the second half of their first round NCAA men’ s basketball tournament game at Fiserv Forum.
August 12, 2025

Kalshi, Polymarket Competitor Novig Lands $18M in Funding

Joe Montana is among Novig’s investors.
Emmanuel Clase
August 12, 2025

Ohio Moving to Ban Prop Bets Amid Guardians Gambling Investigation

Ohio’s governor said prop betting has “failed badly” in the U.S.
Emmanuel Clase
July 29, 2025

Emmanuel Clase Gambling Leave Not Costing Finlete Investors—Yet

Clase is the company’s only client currently in the majors.