US lawmakers from gaming states urge SCOTUS to take up Kalshi case
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
US state lawmakers from gaming states, organized under the National Council of Legislators from Gaming States (NCLGS), have submitted an amicus brief to the US Supreme Court supporting New Jersey's petition in its legal case against prediction market company Kalshi. The petition requests the Supreme Court to resolve whether state or federal authorities have jurisdiction over sports betting via prediction markets like Kalshi. The NCLGS argues that a ruling favoring Kalshi would undermine states' abilities to regulate such betting activities.
Why it matters
The case, if taken up by the Supreme Court, could clarify the division of regulatory authority between state governments and federal agencies over prediction market platforms related to sports betting. The NCLGS warns that a decision limiting state regulatory power could force a restructuring of state gaming laws and allow entities to circumvent current regulations by reclassifying their offerings.
Key context
The dispute stems from New Jersey authorities challenging Kalshi’s offering of event contracts they categorize similarly to sports bets. New Jersey asserts that states hold the primary regulatory role, while Kalshi and related arguments suggest federal oversight by the Commodity Futures Trading Commission (CFTC). The US Court of Appeals for the Third Circuit previously ruled on this matter, prompting New Jersey’s petition to the Supreme Court.
Key numbers and entities
Entities involved include prediction markets platform Kalshi, New Jersey Attorney General, the National Council of Legislators from Gaming States (NCLGS), the US Supreme Court, the US Court of Appeals for the Third Circuit, and the Commodity Futures Trading Commission (CFTC). Kalshi has until November 9 to respond to the Supreme Court petition.
What remains unclear
The Supreme Court has not yet decided whether to accept the case for review. Kalshi’s official response to the petition has not been filed, and the source does not disclose the company’s detailed legal arguments beyond its previous statement rejecting multiple state regulators' oversight. The final determination of jurisdiction and implications for other markets remains unresolved.