New Jersey officials petition US Supreme Court over prediction markets
New Jersey’s attorney general and gaming regulator asked the US Supreme Court to decide whether prediction market firms are governed by federal or state law. The petition targets Kalshi’s sports-related event contracts and argues that the 2010 Dodd-Frank Act did not preempt state sports-gambling laws, even if a platform is registered with the CFTC. This follows a Third Circuit ruling that favored Kalshi, finding the company had a reasonable chance of showing federal law preempts state enforcement. New Jersey says the issue affects enforcement actions in at least 20 states and could determine whether prediction markets can offer sports betting without complying with state gambling rules. Kalshi said it should not be subject to 50 separate regulators and remains confident in the lower-court rulings.
