State lawmakers seek Supreme Court review over prediction markets

• The National Council of Legislators from Gaming States has urged the US Supreme Court to hear the Kalshi dispute.
• The group filed an amicus brief supporting New Jersey’s petition for Supreme Court review.
• The case could clarify whether states or federal agencies regulate sports-related prediction markets.

The National Council of Legislators from Gaming States has urged the US Supreme Court to hear the Kalshi case.

NCLGS filed an amicus brief supporting New Jersey’s petition for review of the dispute.

“If Kalshi’s self-described ‘sports betting’ activities are deemed beyond state regulation, then casinos, pari-mutuel operators, and other heavily regulated entities are certain to amend their business and products to seek the same status,” according to state lawmakers.

The filing argues that states traditionally regulate gambling and should retain authority over sports betting activities.

NCLGS said a ruling favouring Kalshi could force states to reconsider existing gambling laws and regulatory frameworks.

The filing also points to a split between the Third and Ninth Circuits over federal pre-emption of state gambling laws.

New Jersey filed its Supreme Court petition on September 2, while Kalshi has until November 9 to respond.

The case could clarify the respective roles of state gambling authorities and federal regulators overseeing prediction markets.