New Jersey brings Kalshi sports betting case to Supreme Court
7 Regulation New Jersey asks the Supreme Court if states can regulate Kalshi’s sports prediction markets, challenging a federal ruling that favors federal oversight over state gambling laws.
New Jersey has petitioned the US Supreme Court to decide if states can regulate sports prediction markets operated by Kalshi, following conflicting rulings from federal appeals courts. The state argues that Kalshi’s sports event contracts constitute illegal sports betting under New Jersey law. In contrast, Kalshi claims its products are federally regulated swaps under the Commodity Exchange Act and Dodd-Frank amendments. Previously, the Third Circuit Court of Appeals sided with Kalshi, ruling that federal law preempts state gambling regulations. However, other appellate courts have issued differing opinions on the matter. New Jersey’s petition seeks clarity on whether federal law prevents states from enforcing their gambling statutes on prediction markets registered with the Commodity Futures Trading Commission. The Supreme Court’s decision could significantly impact licensing, taxation, and consumer protection in the national prediction markets industry.
