New Jersey sports trading case sees Kalshi granted temporary restraining order
Victory for Prediction Market Operator Kalshi in New Jersey
😎 Spice up your gambling game 🤑 with Kalshi's legal prediction markets! 🥳
Latest Update: In an exciting turn of events in the gambling world, Kalshi triumphs over the New Jersey Division of Gaming Enforcement (NJDGE)! 🎉 A federal court in New Jersey granted Kalshi a preliminary injunction, enabling the company to keep offering sports-related event contracts in the state, pending the court's final decision [2][4][5].
The Court Battle
After receiving a cease-and-desist order from the NJDGE, Kalshi challenged the regulations with a motion for a preliminary restraining order and a temporary injunction [5]. The NJDGE, however, opposed Kalshi's motion. The division claims that Kalshi's sports event contracts violated New Jersey sports betting laws [5].
Kalshi's Counterargument
Kalshi's primary argument is that their event contracts are not your conventional sports betting. Instead, they are federally regulated exchanges, certified as a designated contract market (DCM) by the U.S. Commodity Futures Trading Commission (CFTC) [5]. This stance has been supported by previous victories in other jurisdictions, such as Nevada [3][4]. Apart from New Jersey, Kalshi is currently battling similar cases in Maryland [4].
As of now, a Maryland judge has not made a ruling on Kalshi's motion for a preliminary injunction, but a hearing is scheduled for May 29 [4].
🎉 Stay tuned for further updates in the fascinating world of sports prediction markets! 🎉 🍻🎯️
- Despite the NJDGE's claims that Kalshi's sports event contracts violated New Jersey sports betting laws, Kalshi maintains that their contracts are federally regulated exchanges, certified as a designated contract market (DCM) by the CFTC.
- In a similar case, Kalshi has previously won in Nevada, arguing that their event contracts are not typical sports betting, but rather, they are federally regulated exchanges.
- The preliminary injunction granted by the federal court in New Jersey allows Kalshi to continue offering sports-related event contracts in the state, pending the court's final decision, highlighting the company's efforts to operate within the legal framework of sports-betting regulations.
