New Jersey Seeks Supreme Court Review of Prediction Market Regulation

New Jersey Attorney General Jennifer Davenport is asking the Supreme Court to review the issue of whether the 2010 Dodd-Frank Act pre-empts states from regulating sports contracts occurring within their jurisdictions if offered on markets registered with the CFTC. The state’s appeal hinges on whether the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act pre-empts states from regulating sports contracts occurring within their jurisdictions if offered on markets registered with the CFTC.

Companies like Kalshi claim to offer legal sports betting in all 50 states, but they refuse to follow the gambling laws of any state. The Third Circuit Court of Appeals ruled 2-1 in April that New Jersey couldn’t regulate companies like Kalshi. The Ninth Circuit ruled 3-0 for Nevada against Kalshi.

Kalshi insists on a different approach – one where federalism has no place, and where the sports gambling laws must be the same in New Jersey as in Utah, so long as the company self-certifies its sports bets with the CFTC. Kalshi is an open, nationwide financial exchange. It cannot be regulated by 50 different regulators.