New Jersey AG asks Supreme Court to rule Kalshi must follow state law

Jennifer Davenport says Kalshi claims to offer legal sports betting in all 50 states but won’t follow the rules.

The hit

New Jersey attorney general Jennifer Davenport is pushing the US Supreme Court to force prediction markets under state gaming law. She told a news conference on Tuesday that Kalshi claims to offer legal sports betting in all 50 states but refuses to follow state rules.

Why it matters

Davenport said her litigation aims to ensure only operators licensed by New Jersey & meeting its regulatory requirements offer sports wagering in the state. New Jersey asked the Supreme Court last month to review a Third Circuit ruling that found the Commodity Exchange Act bars states from regulating sports event contracts on prediction markets. The state argues the ruling would kill state regulation of sports betting & expose operators to Wire Act violations.

The record

Third Circuit ruling	2-1 decision found the Commodity Exchange Act bars states regulating sports event contracts (US Third Circuit Court of Appeals)
Conflicting ruling	Ninth Circuit backed Nevada’s right to prohibit sports event contracts (US Ninth Circuit Court of Appeals)
Coalition backing New Jersey	39 states, DC, 146 tribal nations & tribal organisations & the NFL joined the Supreme Court petition

What happens next

Watch for the Supreme Court’s decision on whether to take New Jersey’s case.

Sources: New Jersey regulators release responsible-gaming requirements, AG targets Kalshi

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