Gaming-State Lawmakers Urge Supreme Court To Review Kalshi Case

The National Council of Legislators from Gaming States is urging the U.S. Supreme Court to review New Jersey’s dispute with Kalshi, a move that could clarify who regulates sports-related prediction markets.

The group filed an amicus brief Tuesday supporting New Jersey’s petition for the Supreme Court to hear the case. New Jersey filed its petition Sept. 2 after a ruling by the U.S. Court of Appeals for the Third Circuit.

The dispute centers on whether state gaming regulators or federal agencies have authority over prediction-market companies offering sports-related contracts. The question could affect how sports betting products are regulated across the United States.

The lawmakers argued that a decision favoring Kalshi could leave states without power to regulate sports betting conducted through prediction markets, creating substantial harm and confusion. They also warned that casinos, pari-mutuel operators and other heavily regulated businesses could seek similar treatment if Kalshi’s products were found to fall outside state oversight.

The filing adds to growing scrutiny of prediction markets in Washington. Eleven Democratic senators have separately urged a Senate Banking Committee hearing on prediction markets, expanding congressional attention to a sector primarily overseen through the Senate Agriculture Committee and the Commodity Futures Trading Commission.

Kalshi has until Nov. 9 to file its brief stating its position in the case.