Resolution criteria

• Resolves YES if the U.S. Court of Appeals for the Third Circuit, in KalshiEx LLC v. Flaherty et al., No. 25-1922, issues a dispositive decision that (a) affirms the District of New Jersey’s April 28, 2025 preliminary injunction protecting Kalshi from New Jersey enforcement, or (b) otherwise disposes of the appeal in a way that leaves that injunction in effect (e.g., dismissal of the appeal). (dockets.justia.com, law.justia.com)

• Resolves NO if the Third Circuit reverses, vacates, or materially narrows the injunction such that New Jersey regulators may resume enforcement against Kalshi’s challenged event contracts. Outcome follows the court’s final mandate, including any rehearing or en banc proceedings. (dockets.justia.com)

Background

• On Apr 28, 2025, D.N.J. granted Kalshi a preliminary injunction barring New Jersey’s Division of Gaming Enforcement from enforcing its cease-and-desist against Kalshi’s sports event contracts; a $100,000 bond was imposed. (law.justia.com)

• New Jersey appealed; the Third Circuit opened No. 25-1922, expedited the case, and slated it for the panel sitting the week of Sept 8, 2025. Numerous amici (including a multistate coalition and industry groups) have filed. (dockets.justia.com)

• Separately, the CFTC dropped its D.C. Circuit appeal in May 2025 after Kalshi’s district-court win on political contracts, leaving that ruling intact—context for federal/state tensions over event markets. (reuters.com)

Considerations

• This appeal concerns a preliminary injunction (likelihood of success, irreparable harm), not final merits; the panel could rule narrowly while signaling views. (law.justia.com)

• If the appeal is dismissed but the district court’s injunction remains in place, this resolves YES; if dismissed with vacatur of the injunction or transferred out of the Third Circuit, resolves NO. (dockets.justia.com)