# Kalshi Notches Victory Over New Jersey Gambling Regulators

*Author: Jack Inabinet*
*Published: Apr 6, 2026*
*Source: https://www.bankless.com/read/news/kalshi-notches-major-win-over-new-jersey-gambling-regulators*

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The U.S Court of Appeals for the Third Circuit has granted Kalshi's request for a preliminary injunction against the New Jersey Division of Gaming Enforcement. 

### What's the Scoop?
- **Motion Granted:** Ruling 2-1 for the Third Circuit Court of Appeals, a panel of judges has [granted](https://fingfx.thomsonreuters.com/gfx/legaldocs/dwpkykxqzpm/04062026kalshi.pdf) Kalshi's request for a preliminary injunction against New Jersey state regulators (who themselves wanted to preemptively block sports event contracts), finding Kalshi's argument that federal law preempts state gambling regulations has a reasonable enough chance of winning to allow the ongoing offer of sports-based event contracts.
- **Underlying Logic:** The court affirmed that the CFTC holds exclusive jurisdiction over "swaps" traded on regulated exchanges, and that Kalshi's sporting event contracts qualify as swaps. Because Kalshi self-certified its contracts under CFTC rules, and the agency has not objected, they can be presumed as potentially lawful until a final court decision is reached.
- **Other Outcomes:** Kalshi is actively [engaged](https://bankless.ghost.io/polymarket-announces-v2-exchange-contracts-private-label-stablecoin/) in lawsuits with 10 U.S. states. The prediction market company has [won](https://www.coindesk.com/policy/2026/01/10/tennessee-orders-kalshi-polymarket-and-crypto-com-to-cease-sports-betting-contracts) preliminary injunction using the same logic against Tennessee and California, but has [lost](https://www.bankless.com/read/news/federal-judge-scrutinizes-legality-of-kalshis-sports-based-prediction-markets) federal appeals arguments against the states of Maryland, Massachusetts, Nevada, and Ohio.

> Huge win for [@Kalshi](https://twitter.com/Kalshi?ref_src=twsrc%5Etfw) (and all PMs) in the 3rd Circuit. This is the first appellate ct to weigh in and sets important precedent for related litigation. Key takeaways:1)CFTC has exclusive jurisdiction over swaps2)Sports event contracts are swaps3)Enforcing state gambling laws… [pic.twitter.com/cbuxn3aMIq](https://t.co/cbuxn3aMIq)— Ryan VanGrack (@RVanGrack) [April 6, 2026](https://twitter.com/RVanGrack/status/2041158346749698323?ref_src=twsrc%5Etfw)