NJ urges SCOTUS to rule that Kalshi sports bets are gambling, not "swaps"
Circuit split raised the odds that SCOTUS will rule on Kalshi fight against states.
New Jersey yesterday asked the Supreme Court to rule on whether states can regulate sports betting on prediction markets such as Kalshi.
“Companies like Kalshi claim to offer legal sports betting in all 50 states, but they refuse to follow the gambling laws of any state," New Jersey Attorney General Jennifer Davenport said in a press release announcing the lawsuit.
In April, the US Court of Appeals for the 3rd Circuit ruled that New Jersey cannot regulate sports bets on prediction markets. The court determined that sports-related event contracts meet the legal definition of "swaps," giving the US Commodity Futures Trading Commission (CFTC) exclusive jurisdiction.