State lawmakers push Supreme Court to rule on Kalshi contracts

The National Council of Legislators from Gaming States warns a Kalshi win could cut federal & state tax revenue.

The hit

State gaming lawmakers have taken their fight over prediction markets straight to the Supreme Court. The National Council of Legislators from Gaming States reportedly filed an amicus brief backing New Jersey Attorney General Jennifer Davenport’s petition for a writ of certiorari against Kalshi, according to GamblingNews. The brief asks the Court to confirm states can regulate sports event contracts.

Why it matters

Kalshi says it is not subject to state gambling law because its contracts fall under Commodity Futures Trading Commission oversight. If the Supreme Court agrees, casinos & pari-mutuel operators could restructure to claim the same exemption, according to the lawmakers’ brief, which warns this could lead to a decline in federal & state tax revenue.

The record

Petitioner	New Jersey Attorney General Jennifer Davenport seeks Supreme Court review
Filer of amicus brief	National Council of Legislators from Gaming States
Prior ruling	US Court of Appeals for the Third Circuit decision under appeal
Kalshi’s position	Claims CFTC oversight exempts it from state gaming laws
Lawmakers’ warning	A Kalshi-favourable ruling risks “substantial harm & confusion” (NCLGS brief)

What happens next

Watch for the Supreme Court’s decision on whether to grant certiorari, which will determine if the case proceeds to a full hearing on state versus federal jurisdiction.

Sources: Lawmakers Say US Supreme Court Ought to Weigh In on Prediction Markets

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