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New Jersey asks US Supreme Court to settle sports betting on prediction markets
The bid follows a Third Circuit ruling in Kalshi’s favor after New Jersey issued a cease-and-desist over alleged violations of state gambling laws.
New Jersey is asking the U.S. Supreme Court to decide how sports betting on prediction markets should be regulated, as a dispute between state and federal authority continues to escalate, according to The Block. New Jersey Attorney General Jennifer Davenport filed a 332-page petition for a writ of certiorari, seeking Supreme Court review of a lower court decision. The case began last year when New Jersey sent prediction markets platform Kalshi a cease-and-desist letter alleging violations of the state’s gambling laws. Kalshi sued New Jersey, and the matter moved to the U.S. Court of Appeals for the Third Circuit, which ruled in Kalshi’s favor. Davenport’s statement frames the issue as one Congress did not make immune from state law, citing state efforts to regulate gambling and prevent harms including compulsive gambling, gambling by minors, and insider trading. A Kalshi spokesperson said the platform disagrees with New Jersey’s filing, arguing that as an open nationwide financial exchange it cannot operate under 50 different regulators. The Block also notes the Commodity Futures Trading Commission and states have been involved in multiple legal fights over prediction markets, particularly those offering sports contracts, with states arguing they can amount to gambling under gaming laws.