Kalshi Dispute Heads to SCOTUS as State Lawmakers Weigh in on Prediction Market Regulation

US state lawmakers have intervened in the ongoing dispute between Kalshi and New Jersey's gaming authorities, filing an amicus brief to support the state's position that prediction-market platforms should be regulated at a local level.

The National Council of Legislators from Gaming States (NCLGS) submitted its brief on Tuesday, backing the New Jersey Attorney General and gaming regulators in their pursuit of a writ of certiorari to clarify the balance between state authority and federal oversight in this area.

According to the brief, if the Supreme Court were to rule that Kalshi's products are beyond state regulation, it would create 'substantial harm and confusion,' undermining existing regulatory frameworks for heavily supervised gaming activities. NCLGS argues that this would allow other operators to restructure their offerings to avoid similar regulations.

The amicus brief also warns of potential ripple effects across the US gaming industry if Kalshi is found exempt from state regulation, with states forced to reconsider entire regulatory regimes tied to 'vice activity' if federal preemption is established in this area.