KalshiEX LLC v. Flaherty

Injunction affirmed (preliminary)3d Cir.Kalshi v. State

Last updated August 16, 2026. Snapshot — not legal advice.

Overview

The most consequential early win for the industry. A divided Third Circuit panel (2-1) affirmed a preliminary injunction barring New Jersey from enforcing its gambling law against Kalshi’s sports event contracts, holding those contracts are likely federally-regulated "swaps" under the Commodity Exchange Act and that the CFTC’s jurisdiction is likely exclusive. This is a preliminary ruling on likelihood of success, not a final merits judgment, and it sits in direct tension with the New York district court’s later decision.

Timeline

Spring 2025

New Jersey Division of Gaming Enforcement issues a cease-and-desist; Kalshi sues and wins a preliminary injunction in the district court.

April 2026

Third Circuit affirms the preliminary injunction 2-1, holding sports event contracts likely-preempted "swaps."

August 2026

Deadline (SCOTUS-extended) for New Jersey to seek certiorari.

What's next: New Jersey has a SCOTUS-granted extension (to early August 2026) to file a cert petition; reportedly weighing the Sixth Circuit’s ruling first.

Parties

Plaintiffs

  • KalshiEX LLC

Defendants

  • Mary Jo Flaherty (Acting Director, NJ Division of Gaming Enforcement)
  • New Jersey Division of Gaming Enforcement
This page is informational, not legal advice. Nearly every entry in this tracker is a preliminary ruling under appeal. Always verify a platform's current, location-specific eligibility directly with the venue before relying on this page.