39 States Ask Supreme Court to Review Kalshi Sports Contracts

Ohio and 38 other states, joined by Washington, D.C., asked the U.S. Supreme Court to review whether Kalshi can offer sports-related prediction contracts without complying with state gambling laws.

The filing, submitted Oct. 7, backs New Jersey’s petition in Flaherty v. KalshiEX, LLC, docket No. 26-299. The states argue the contracts are not “swaps” protected from state oversight under the Commodity Exchange Act and that federal law does not remove states’ authority to regulate gambling.

The dispute follows conflicting appeals-court decisions. The Third Circuit ruled for Kalshi, while the Ninth and Sixth circuits reached conclusions rejecting federal preemption of state sports-gambling laws.

The states also warned that federal preemption could weaken safeguards such as minimum-age requirements, exclusion lists and spending limits. Kalshi began offering sports bets Jan. 22, 2025.

New Jersey filed its petition Sept. 2, and the Supreme Court docketed it Sept. 8. The justices have not agreed to hear the case. Kalshi’s response is due Nov. 9.