State officials say Kalshi must follow NJ’s gambling laws. The company says only federal regulators have authority over its sports contracts.
New Jersey officials asked the U.S. Supreme Court Wednesday to step into a nationwide fight over whether prediction markets such as Kalshi must follow state sports-gambling laws.
The dispute has pitted states against an industry that says it should answer only to the federal government, and has the backing of the Trump administration.
Davenport’s petition asks the Supreme Court to decide who can regulate sports contracts offered by Kalshi and other prediction markets. New Jersey officials say the contracts are sports wagers subject to state gambling laws, while Kalshi says they are financial contracts overseen exclusively by the Commodity Futures Trading Commission.
“Kalshi does not abide in any way with our State’s gaming laws,” said Mary Jo Flaherty, interim director of the New Jersey Division of Gaming Enforcement. “This is a states’ rights issue. In New Jersey, gaming is prohibited by its Constitution, other than for exceptions approved by New Jersey voters.”
Kalshi spokesperson Dani Lever criticized the petition.
Read More
