Kalshi, New Jersey Spar Over State Oversight on Sports Trading

Both KalshiEX LLC and New Jersey’s attorneys tried to convince the Third Circuit that the consequences of its ruling on federal versus state oversight of sports-related event contracts would have far-reaching implications.

The US Court of Appeals for the Third Circuit panel on Wednesday questioned what sports betting would qualify as “swaps” outside of those on a derivatives exchange like Kalshi Inc.'s where customers wager on predictions for future events under the Commodity Exchange Act. Chief Judge Michael A. Chagares pushed back on the New Jersey attorney’s view of a statute’s definition, finding it more broad.

Kalshi told the appellate ...