Kalshi faces Supreme Court review after 2-1 ruling

• New Jersey has asked the US Supreme Court to review Kalshi’s sports prediction markets.
• The petition follows a 2–1 appeals court ruling that favoured Kalshi in April.
• A later Ninth Circuit ruling against Kalshi created a split between federal appeals courts.

New Jersey has asked the US Supreme Court to decide whether states can regulate Kalshi’s sports contracts.

The petition seeks to overturn an April ruling that gave the Commodity Futures Trading Commission exclusive authority.

“Companies like Kalshi claim to offer legal sports betting in all 50 States, but they refuse to follow the gambling laws of any State,” said New Jersey Attorney General Jen Davenport.

New Jersey argues the contracts are sports wagers and should follow state gambling rules, including age restrictions.

The Third Circuit ruled 2–1 that federal commodities law prevents New Jersey from blocking Kalshi’s sports contracts.

The Ninth Circuit later reached the opposite conclusion, ruling Nevada could regulate Kalshi’s sports contracts under state gambling laws.

The conflicting rulings could push the Supreme Court to clarify whether states or the CFTC regulate prediction markets nationwide.