New Jersey Casino Group Challenges Kalshi in Federal Court Brief
Earlier this week, the Casino Association of New Jersey filed an amicus brief, a document filed by a party not involved in the original lawsuit, to the US Court of Appeals for the Third Circuit. This comes as Kalshi, a regulated predictions market under the Commodity Futures Trading Commission, was granted a preliminary injunction in April.
LISTEN TO THIS ARTICLE:Kalshi is regulated, just not by the New Jersey Division of Gaming Enforcement. With this amicus brief, it’s clear that the Casino Association of New Jersey has an issue with it.
Casino Association: Kalshi Operates Outside NJ Sports Betting Rules
In the brief, the Casino Association of New Jersey expressed its opinion regarding prediction markets and exchanges operating without oversight from the NJDGE. Kalshi offers “contracts”, which are basically sports bets that are traded like stocks. This has been happening since Super Bowl 59. In April, Kalshi was granted the injunction as federal law trumped state law.
In April 2025, Kalshi convinced the US District Court for the District of New Jersey (Kiel, J.) that, in fact, federal law makes sports betting legal nationwide and subject exclusively to the CFTC’s jurisdiction. All a sports betting company had to do is follow three easy-peasy steps.
First, register with the CFTC as a designated contract market. Second, notify the CFTC that you intend to allow sports betting on your website. Third, wait 10 business days.
If the CFTC does not intervene, presto!, the company has free license to offer sports betting nationwide, flout state laws that ban it, and ignore state regulations and taxes that restrict it.
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CANJ Claims Kalshi Undermines Legal Sports Betting Framework
The CANJ further noted that Brian Quintenz, a Kalshi board member and former CFTC Commissioner, stated that “trading event contracts (including sports event contracts) is illegal outside a CFTC-designated contract market.”
Now, Quintenz has been nominated to be the chair of the CFTC.
Later, the CANJ argued that Kalshi’s operations threaten the integrity of the state’s regulated industry - though none of the licensed NJ casinos were named directly in the brief.
“The injunction below would allow new market entrants to circumvent New Jersey’s established legal framework for regulating sports betting. It would also disadvantage and imperil the entire existing industry that has organized itself to comply with that legal framework.”
Finally, the CANJ argued that the CFTC doesn’t have the same level of expertise that the NJDGE or the New Jersey Casino Control Commission has.
“Kalshi is not trying to swap state gambling regulations for federal gambling regulations, which are nonexistent. Rather, it is here bidding to offer sports betting without answering to any meaningful constraints.”
The CANJ is one of many to file amicus briefs against prediction markets like Kalshi.
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