Third Circuit Affirms Preliminary Injunction in Favor of Kalshi

On April 6, the U.S. Court of Appeals for the Third Circuit issued a 2-1 decision affirming a preliminary injunction in favor of KalshiEX LLC (Kalshi) against New Jersey state officials, partly on the basis that Kalshi has a reasonable chance or probability of winning on the merits. Most notably, the Third Circuit expressly stated that the Commodity Exchange Act (the CEA) preempts New Jersey’s gambling laws and state constitution as applied to sports-related event contracts offered on Kalshi’s... By: Lowenstein Sandler LLP