New Jersey becomes first state to ask Supreme Court about prediction markets

New Jersey filed a petition for a writ of certiorari asking the U.S. Supreme Court to rule on prediction market regulation. The filing asks whether the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act prevents states from regulating sports bets offered on markets registered with the Commodity Futures Trading Commission. The Third Circuit Court of Appeals ruled months earlier that the Commodity Exchange Act preempted state gambling laws. That ruling gave prediction market provider Kalshi a win in its lawsuit against New Jersey. State and federal courts have considered prediction market cases over the past two years. Their rulings are beginning to diverge. New Jersey Attorney General Jennifer Davenport said prediction market providers have no right to offer sports bets without following state law.