Are Prediction Markets Legal in New Jersey?

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

As of August 16, 2026, prediction markets are operating in New Jersey — a court currently shields platforms from state enforcement, at least preliminarily and pending appeal.

Prediction markets in New Jersey

Protected by injunction

The Third Circuit affirmed a preliminary injunction barring New Jersey from enforcing its gambling law against Kalshi’s sports event contracts (KalshiEX LLC v. Flaherty, April 2026), holding those contracts likely federally-preempted "swaps." The ruling is preliminary and a cert petition remains possible.

Litigation affecting New Jersey

KalshiEX LLC v. FlahertyPreliminary injunction against the state affirmed 2-1 (April 2026); sports contracts held likely-preempted "swaps."

Injunction affirmed (preliminary)

Sports betting & gambling in New Jersey

Legal — Online & Retail

Legalized 2018 after New Jersey’s Supreme Court win struck down PASPA; retail and statewide mobile launched 2018 The market is regulated by the New Jersey Division of Gaming Enforcement. Tribal gaming: not a factor.

The federal-vs-state fight

Every entry in this fight turns on the same question: does a prediction-market platform's federal regulation by the CFTC preempt a state's gambling law, or does the state retain authority to restrict it? Courts around the country are answering that question differently — sometimes for the platform, sometimes for the state — and almost every ruling so far is preliminary and under appeal. Treat this page as a snapshot, not a final word.

This page is informational, not legal advice. Nearly every litigation entry referenced here is a preliminary ruling under appeal. Always verify a platform's current, location-specific eligibility directly with the venue before relying on this page.