Is Kalshi legal in New Jersey?
New Jersey is the most important state on this map, and not because of how many people trade there. It is important because New Jersey is the state that lost the test case. Every other state fighting Kalshi — Nevada, Ohio, Washington, Michigan, New York — is arguing against a published federal appellate opinion that came out of Trenton. If you only read one state page, read this one.
The timeline
| Date | What happened |
|---|---|
| Late 2024 | Kalshi launches sports-related event contracts nationally. |
| Mar 2025 | New Jersey's Division of Gaming Enforcement issues a cease-and-desist, citing the state constitution and its ban on college sports wagering. |
| Apr 2025 | Kalshi sues in the District of New Jersey and wins a preliminary injunction blocking enforcement. |
| Apr 6, 2026 | Third Circuit affirms 2-1 in KalshiEX LLC v. Flaherty, No. 25-1922. Judge Porter writes; Judge Roth dissents. |
| Jun 26, 2026 | NJ Solicitor General Jeremy Feigenbaum asks the Supreme Court for an extension to file a cert petition. |
| Aug 4, 2026 | Extended deadline set by Justice Alito for New Jersey's certiorari petition. |
| Jul 30, 2026 | Sixth Circuit hears oral argument in Kalshi's Ohio and Tennessee appeals. |
| Pending | Sixth, Fourth and Ninth Circuit rulings plus the Massachusetts SJC — any of which could create a split. |
What the majority held
The panel majority accepted Kalshi's core argument: its sports event contracts are "swaps" under the Commodity Exchange Act, and because they trade on a CFTC-registered designated contract market, the CFTC's jurisdiction is exclusive. On that reading, New Jersey applying its gambling statutes to those contracts is both field-preempted and conflict-preempted. It is the first time a federal appeals court has said so.
The word doing the heavy lifting is "likely." A preliminary injunction asks whether the plaintiff has a reasonable probability of winning, not whether it has won. The case went back to the district court, and the CFTC's own rulemaking on event contracts is still unfinished. Nothing here is settled.
Why the dissent matters more than usual
Judge Roth's dissent argued that Kalshi's sports offerings are virtually indistinguishable from the bets a New Jersey resident can already place at a licensed sportsbook — the same games, the same outcomes, priced the same way. Her analysis of impossibility preemption and of Dodd-Frank's legislative history is the roadmap every state attorney general has been citing since April. When New York, Ohio and Washington write their briefs, they are effectively writing Judge Roth's opinion back into the record.
That is the practical takeaway: a 2-1 split at the circuit level is exactly the kind of decision the Supreme Court eventually looks at, especially once a second circuit disagrees.
How New Jersey compares
| State | Status | Detail |
|---|---|---|
| New Jersey | Kalshi available | State enjoined; Third Circuit affirmed Apr 6, 2026. |
| Nevada | Restricted | Cease-and-desist upheld; state enforcing. |
| Ohio | Restricted | $5M fine and C&D; Kalshi injunction denied. |
| Washington | Restricted | Injunction effective Aug 5; geofence by Aug 26, 2026. |
| Michigan | Restricted | TRO with $120k/day penalty; Aug 12 geofence deadline. |
| New York | Contested | AG sued Jul 31, 2026; no injunction yet. |
Read the full picture on our 50-state Kalshi legality tracker, which we update as orders land.
What to watch next
Three things decide whether this page changes. First, whether New Jersey's certiorari petition is docketed and, if so, whether the Court calls for a response. Second, whether the Sixth, Fourth or Ninth Circuit breaks the other way — the Sixth heard argument on Ohio and Tennessee on July 30, 2026, and is the most likely near-term source of a split — a genuine split is the single strongest predictor of Supreme Court review. Third, the CFTC's final event-contract rule, which could moot large parts of the preemption fight by settling federally what a sports event contract is.
Until one of those moves, New Jersey residents can trade on Kalshi, and the state cannot stop them.
Frequently asked questions
- Can I trade Kalshi event contracts in New Jersey right now?
- Yes. A federal preliminary injunction bars New Jersey from enforcing its gambling laws against Kalshi, and the Third Circuit affirmed that injunction on April 6, 2026. Kalshi remains open to New Jersey residents, including its sports event contracts, while the litigation continues.
- What did the Third Circuit actually decide?
- In KalshiEX LLC v. Flaherty, No. 25-1922, a 2-1 panel held that Kalshi is likely to succeed in arguing that the Commodity Exchange Act preempts state gambling law as applied to sports event contracts listed on a CFTC-regulated designated contract market. It is a preliminary-injunction ruling about likelihood of success, not a final judgment on the merits.
- Is a Kalshi sports contract the same thing as a bet at a New Jersey sportsbook?
- Legally, that is the entire dispute. Kalshi says its contracts are federally regulated swaps. New Jersey says they are functionally wagers. Judge Roth's dissent argued the products are virtually indistinguishable from what DraftKings and FanDuel offer under state licence. Economically the exposure is similar; the regulator and the consumer protections are not.
- Could New Jersey still win?
- Yes. The state asked the Supreme Court for more time to file a certiorari petition and Justice Alito set an August 4, 2026 deadline. Parallel appeals in the Fourth and Ninth Circuits and before the Massachusetts Supreme Judicial Court could create a circuit split, which would make Supreme Court review considerably more likely.
- Does this ruling cover Polymarket too?
- No. The Third Circuit decision is about Kalshi specifically as a CFTC-designated contract market. Polymarket's US position rests on a separate regulatory footing, and a state-by-state outcome for one platform does not automatically transfer to the other.
Sources
- Third Circuit opinion, KalshiEX LLC v. Flaherty, No. 25-1922 (Apr. 6, 2026)
- Justia case record, KalshiEX LLC v. Flaherty
- Holland & Knight: CFTC jurisdiction over sports event contracts likely exclusive
- Legal Sports Report: NJ extension request could send Kalshi case to Supreme Court