New Jersey Asks Supreme Court to Settle Prediction-Market Sports Betting Fight

Prediction markets such as Kalshi list contracts whose payouts depend on event outcomes, including sports results. Kalshi argues those products are swaps governed exclusively by the Commodity Futures Trading Commission under the Commodity Exchange Act, while New Jersey says they are wagers subject to state gambling laws. The dispute could reshape oversight of a multibillion-dollar industry and affect state-licensed sportsbooks, tribal gaming rights and consumer protections, including safeguards against underage and compulsive gambling.

New Jersey Attorney General Jennifer Davenport petitioned the U.S. Supreme Court on Sept. 2, becoming the first state to seek the justices’ intervention. The state wants to overturn an April 2-1 Third Circuit ruling that backed Kalshi and federal preemption. The filing followed a 3-0 Ninth Circuit decision the previous week in a Nevada case that found sports-event contracts were not swaps and could face state regulation. U.S. sports-betting revenue reached $16.89 billion in 2025, excluding tribal sportsbooks. The Supreme Court must first decide whether to hear the appeal.