Kalshi can't be stopped in New Jersey. A 3rd US Circuit Court of Appeals panel ruled on Monday that New Jersey has no authority to regulate Kalshi's prediction market allowing people to bet on the outcome of sports events. That power rests with the Commodity Futures Trading Commission, the panel ruled 2-1. The CFTC is headed by President Donald Trump appointee Michael Selig, who vocally and actively supports prediction markets like Kalshi and Polymarket, calling them "exciting products." The Trump family agrees: Donald Trump Jr. is a paid adviser to Kalshi and an unpaid adviser to Polymarket, and Truth Social, which is run by the Trump Media and Technology Group, is set to start a prediction market of its own. Online prediction markets are an emerging phenomenon that allow users to bet on the outcome of basically anything, from local athletic competitions to lethal military invasions. Though they're new, these marketplaces have already shown evidence of insider trading on an extreme scale, with suspicious bets and big payouts tied to the US and Israel's military strikes in Iran, and also the US' brief invasion in Venezuela. According to blockchain analyst DeFi Oasis, fewer than 0.04 percent of Polymarket accounts captured more than 70 percent of profits, totaling $3.7 billion. Multiple state gaming regulators have filed legal challenges against Kalshi and Polymarket in recent months, and just last week the CFTC sued Arizona, Connecticut and Illinois over their attempts to regulate prediction markets. While each state has its own angle of attack, from election issues to underage betting, they're all broadly claiming that prediction markets are just illegal gambling businesses. Today's ruling marks the first federal-level decision in one of these cases and it's in favor of the prediction markets. New Jersey sent Kalshi a cease and desist letter in 2025, claiming the service violated the state's ban on collegiate sports betting. Kalshi escalated the situation and sued New Jersey, arguing that its sports contracts are actually swaps, a type of financial investment that's (conveniently) regulated by the CFTC. A lower-court judge previously sided with Kalshi, prompting New Jersey to appeal. Two of the three judges in that appeal ruled that Kalshi's sports-related event contracts were indeed swaps. Kalshi CEO Tarek Mansour called Monday's ruling "a big win for the industry." US Circuit Judge Jane Richards Roth dissented, writing that Kalshi's "offerings were virtually indistinguishable from the betting products available on online sportsbooks, such as DraftKings and FanDuel." New Jersey Attorney General Jennifer Davenport has the option to ask the full 3rd Circuit to rehear the case, and the issue is also pending in several other courts. This article originally appeared on Engadget at https://www.engadget.com/big-tech/new-jersey-has-no-right-to-ban-kalshis-prediction-market-us-appeals-court-rules-214448284.html?src=rss
The legal battle between Epic Games and Apple is escalating once again. For a second time, the warring factions are going straight to the top of the judicial system. Apple is asking for the Supreme Court to review when and how it can charge commissions on mobile purchases made via third-party payment systems. The business has requested a motion to stay on a lower court ruling regarding the fees Apple charges to software developers using those external financial systems rather than the App Store. The last time Apple petitioned for an appeal at the top of the judicial branch, it was about a lower court requiring it to allow developers to use third-party payment options. The Supreme Court declined to hear that case. It's possible that the tech company will once again be denied, although this effort regards specifically limits on commission rates rather than the basic premise of allowing in-app payments to be processed outside the App Store. Epic Games has been pushing both Apple and Google on the subject of their app store commission fees for years. Recently, the gaming company did appear to reach an accord with Google that saw the company's popular game Fortnite globally return to the Google Play Store in March. That ruling reportedly requires Epic's notoriously opinionated CEO to keep quiet on the subject of Google's app store fees until 2032. Epic Games recently made substantial job cuts, laying off more than 1,000 workers last month. This article originally appeared on Engadget at https://www.engadget.com/big-tech/apple-will-again-appeal-to-the-supreme-court-in-battle-with-epic-games-193551758.html?src=rss
