TECHNOLOGY · VERIFIED DEVELOPMENT
New Jersey Seeks Supreme Court Ruling on Kalshi Sports Betting Regulation
WHY IT MATTERS
The outcome will determine whether state regulators can oversee sports betting on prediction markets, affecting industry compliance and consumer protection across all 50 states.
What happened
New Jersey Attorney General Jennifer Davenport filed a lawsuit asking the Supreme Court to decide whether sports betting on prediction‑market platforms like Kalshi is gambling or a swap. Kalshi claims to provide legal sports betting nationwide but does not comply with state gambling laws.
In April, the U. S.
Court of Appeals for the Third Circuit ruled that New Jersey lacks authority to regulate such bets, holding that sports‑related event contracts fall under the Commodity Futures Trading Commission’s definition of swaps and therefore fall under federal jurisdiction. The case now moves to the Supreme Court, which will determine if state regulators can impose their own rules on prediction‑market sports betting.
PRIMARY SOURCES
Supreme Court urged to let states regulate sports bets on prediction markets
Ars Technica · Jon Brodkin · Discovery only; Condé Nast copyright terms apply · Source updated