Prediction Market Fight: New Jersey Takes Kalshi to Supreme Court

Key Insights

• New Jersey escalated its prediction market dispute with Kalshi.
• Federal appeals courts issued conflicting rulings on sports event contracts.
• Supreme Court review could clarify federal and state regulatory authority.

New Jersey escalated its prediction market dispute with Kalshi on Sept. 2 by asking the U.S. Supreme Court to review a ruling limiting state oversight of sports event contracts.

Attorney General Jennifer Davenport and New Jersey Division of Gaming Enforcement Interim Director Mary Jo Flaherty filed a petition for a writ of certiorari challenging an April Third Circuit decision. The state wants the justices to determine whether the Commodity Exchange Act prevents states from applying gambling laws to sports contracts traded on CFTC-regulated exchanges.

The filing arrived days after the Ninth Circuit reached the opposite conclusion in a parallel Nevada case. That disagreement gives the Supreme Court a clearer opportunity to resolve a growing federal-state jurisdiction dispute affecting Kalshi and other prediction-market operators.

Prediction Market Case Reaches Supreme Court

New Jersey filed a petition for a writ of certiorari after losing before the Third Circuit. The state asked the Supreme Court to review KalshiEX LLC v. Flaherty.