Better Markets Urges 2nd Circuit to Side With New York in Kalshi Appeal

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Better Markets filed a friend-of-the-court brief on Nov. 9 urging the 2nd U.S. Circuit Court of Appeals to reject Kalshi’s appeal in KalshiEX v. Williams and affirm New York’s right to apply state gambling law to Kalshi’s sports-related contracts, according to NJTODAY.NEWS.

What Better Markets told the court

The brief asks the court to reject Kalshi’s appeal on the merits and affirm New York’s right to protect residents from what Better Markets called lawless sports betting. The group argued that Kalshi’s contracts amount to gambling and that federal law should not override state gambling rules. It said doing so would expose millions of Americans to the harms of sports betting.

Dominick Freda, Better Markets’ legal director, said: "Kalshi’s sports bets are what they look like: gambling, pure and simple." He also criticized the Commodity Futures Trading Commission’s position in support of Kalshi, saying: "The law is clear, the CFTC’s position promoting lawless prediction markets is baseless."

Kalshi’s position and rulings cited

Kalshi offers contracts tied to the outcomes of events, including sporting events. The company argues that those federally regulated markets are not subject to state gambling laws. The dispute has played out in courts across the country as states, including New York, seek to bring such contracts under gambling rules.

Better Markets cited rulings by the 9th and 6th U.S. circuit courts of appeals that it said required Kalshi to follow state gambling laws. The group also said none of the 29 judges on the 9th Circuit voted in favor of Kalshi’s request for rehearing.

The 2nd Circuit has already ruled on a preliminary basis that Kalshi may not keep operating its sports contracts in New York while the appeal is pending. The appeal remains pending, and the court has not ruled on the merits.

More from playnj.com – CFTC Seeks Prediction Market Clarity as New Jersey Presses Kalshi Appeal – Poll Finds 60% Oppose Election Betting Amid New Jersey’s Kalshi Fight – Gaming Lawmakers Support New Jersey Appeal in Kalshi Case

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Source: As reported by NJTODAY.NEWS.