NJ urges SCOTUS to rule that Kalshi sports bets are gambling, not "swaps"
New Jersey has petitioned the Supreme Court to intervene in a legal battle over whether prediction markets like Kalshi should be regulated as sports betting or as financial swaps. The case follows conflicting rulings from the 3rd and 9th Circuit courts, creating a split that likely necessitates Supreme Court review.
Why it matters
The outcome will determine whether multi-billion-dollar prediction markets can bypass state-level gambling regulations by classifying their products as financial instruments.
State governments v. Kalshi Supreme Court urged to let states regulate sports bets on prediction markets Circuit split raised the odds that SCOTUS will rule on Kalshi fight against states.
11 Credit: Getty Images | Martin Lelievre Credit: Getty Images | Martin Lelievre Text settings Story text Size Small Standard Large Width * Standard Wide Links Standard Orange * Subscribers only Learn more Minimize to nav 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.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in