New Jersey Seeks Supreme Court Review on Prediction Market Regulation
New Jersey's Attorney General Jennifer Davenport and Mary Jo Flaherty, interim director of the New Jersey Division of Gaming Enforcement, have asked the US Supreme Court to review a case involving prediction markets. They argue that state regulators can enforce gambling rules on platforms claiming federal preemption.
The dispute centers on Kalshi, which asserts it operates under a federal framework and is registered with the Commodity Futures Trading Commission (CFTC). New Jersey claims this does not exempt them from following state laws.
According to the petition, if Kalshi prevails in its argument for CFTC preemption, many sports-betting activities could become illegal outside of CFTC-registered markets. This would leave market participants with limited lawful pathways.