New Jersey Urges SCOTUS to Rule Sports Bets on Kalshi Are Gambling
New Jersey has asked the Supreme Court to decide whether sports bets on prediction markets, such as Kalshi, can be regulated by states.
New Jersey has asked the U.S. Supreme Court to rule on how sports betting contracts offered on prediction market platforms like Kalshi should be regulated.
The state argues that "companies like Kalshi claim to offer legal sports betting in all 50 states, but they refuse to follow the gambling laws of any state," said New Jersey Attorney General Jennifer Davenport in a press release.
The case arose after the U.S. Court of Appeals for the Third Circuit ruled in April that New Jersey cannot regulate sports bets on prediction markets. The court found that sports-related contracts meet the legal definition of "swaps," giving the U.S. Commodity Futures Trading Commission (CFTC) exclusive jurisdiction.
New Jersey's petition to the Supreme Court seeks to overturn lower court rulings and assert states' rights to regulate these markets, which it considers gambling.