New Jersey officials seek Supreme Court review of Kalshi sports betting case

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New Jersey officials filed a Supreme Court petition targeting Kalshi’s sports betting contracts, citing CFTC concerns and questioning whether federal rules on liquidity and crypto markets preempt state laws. The state’s legal team argues that compliance with CFTC guidelines should not override state regulation. The appeal challenges a Third Circuit ruling that favored the prediction market platform. Kalshi said it supports the lower court’s decision and called for a national regulatory framework rather than state-by-state rules.

Odaily Planet Daily News: New Jersey Attorney General Jennifer Davenport and Acting Director of the State Gaming Enforcement Division, Mary Jo Flaherty, have filed a petition for a writ of certiorari with the U.S. Supreme Court, requesting review of the state’s enforcement actions against the prediction market platform Kalshi for offering sports event contracts.

The petition seeks to invoke civil actions filed by at least 20 state gaming regulators, requesting the Supreme Court to determine whether prediction market companies, while complying with regulations from the U.S. Commodity Futures Trading Commission (CFTC), may still violate state laws. The petition also addresses whether the Dodd-Frank Act preempts state authority to regulate sports betting within their jurisdictions.

The application challenges the April ruling by the U.S. Court of Appeals for the Third Circuit, which was decided 2-1. Kalshi spokesperson Dani Lever stated that the company disagrees with New Jersey’s appeal to the Supreme Court and emphasized that Kalshi cannot accept regulation by 50 separate regulators; the company remains confident in the lower court’s ruling. (Cointelegraph)

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