US gaming-state lawmakers urge Supreme Court to hear Kalshi case

The National Council of Legislators from Gaming States filed an amicus brief on Tuesday urging the Supreme Court to consider New Jersey's case against Kalshi. The brief supports a petition filed by New Jersey's attorney general and gaming authorities. The petition was filed on Sept. 2. The petition asks the court to determine whether state authorities or federal agencies have jurisdiction over prediction market companies. The NCLGS argued that a ruling favoring Kalshi would leave states powerless to regulate sports betting on prediction markets. The group said that ruling could cause substantial harm and confusion. The filing did not address the competing argument that event contracts traded on federally regulated markets fall under the CFTC's exclusive jurisdiction. The state lawmakers said casinos and other heavily regulated entities could seek the same status as Kalshi if its sports betting activities fall outside state regulation. New Jersey authorities filed the petition after a decision from the US Court of Appeals for the Third Circuit. Kalshi has not officially responded to the petition. The company has until Nov. 9 to file a brief stating its position. A Kalshi spokesperson said the company could not be regulated by 50 different regulators.