Oral arguments in Kalshi’s lawsuit against New Jersey appeared to go the way of the prediction market, according to lawyers observing the proceedings, as a judge suggested the laws around financial “swaps” appear broad enough to include sports bets, and if that needs to be changed then it should be the job of Congress to sort it out.
Counsel for Kalshi and the state of New Jersey were arguing Wednesday before the Third Circuit Court of Appeals and its panel of three judges: Chief Judge Michael A. Chagares, Justice David J. Porter, and Justice Jane Richards Roth.
The Third Circuit case was brought about when New Jersey appealed a decision in the U.S. District Court for the District of New Jersey to grant an injunction that prevented the state from enforcing a cease-and-desist against Kalshi’s sports event contracts.
