The US Court of Appeals for the Third Circuit ruled in favor of prediction market platforms, affirming that the Commodity Futures Trading Commission (CFTC) holds exclusive jurisdiction over event contracts traded on Kalshi's designated contract market. In a 2-1 decision, the court upheld a lower court's preliminary injunction, blocking New Jersey from enforcing its state gaming laws against Kalshi's sports and event-based contracts. CFTC Chairman Mike Selig applauded the court's decision to uphold federal law and reject New Jersey's attempt to regulate federally-supervised markets. The decision provides greater legal clarity for CFTC-registered platforms operating in the Third Circuit, including New Jersey, and may allow platforms to expand sports and event-based contracts. Future developments will likely depend on ongoing litigation in other jurisdictions and potential rulemaking by the CFTC on event contracts.