State Lawmakers Urge Supreme Court to Take Up Kalshi Prediction Market Case

A group of US state lawmakers has asked the Supreme Court to step into a legal fight between prediction market platform Kalshi and New Jersey gaming authorities. The National Council of Legislators from Gaming States (NCLGS) filed an amicus brief on Tuesday backing New Jersey’s Attorney General. New Jersey’s petition for a writ of certiorari, filed Sept. 2, asks the court to decide whether states or federal agencies have jurisdiction over prediction market companies.

Third Circuit Appeal Behind the Petition

The petition follows a ruling from the US Court of Appeals for the Third Circuit. Kalshi has until Nov. 9 to file its response.

Prediction Markets and State Sports Betting Rules

The NCLGS argued that a win for Kalshi would leave states “powerless” to regulate sports betting on prediction markets, causing “substantial harm and confusion.” The group said gaming matters belong with state authorities. It warned that casinos, pari-mutuel operators and other regulated businesses would reshape their products to gain the same status, forcing states to rethink their rules.

Kalshi has not formally responded, but a spokesperson said it cannot be “regulated by 50 different regulators.” The brief did not address the opposing argument that event contracts on federally regulated markets fall under the CFTC’s exclusive jurisdiction.