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New Jersey petitions Supreme Court over prediction market regulation
New Jersey has petitioned the U.S. Supreme Court to resolve a jurisdictional conflict regarding prediction markets, specifically whether platforms like Kalshi can offer sports-related event contracts without adhering to state gambling laws.
The dispute stems from a split between federal appellate courts. The Third Circuit previously ruled that Kalshi’s contracts are federally regulated derivatives under the Commodity Futures Trading Commission (CFTC), while the Ninth Circuit recently ruled in a separate case involving Nevada that states maintain the authority to regulate such products as sports betting.
New Jersey Attorney General Jennifer Davenport argues that the Commodity Exchange Act does not grant the CFTC exclusive authority to override state police powers concerning gambling, consumer protection, and age restrictions. Conversely, Kalshi maintains its products are financial derivatives and that a patchwork of state regulations would prevent the industry from functioning.
In a separate legal matter, a Michigan court has issued a preliminary injunction against Kalshi, requiring the platform to maintain geofencing to block Michigan residents from accessing sports event contracts. The court imposed a $500,000 daily fine for any violations of these geofencing requirements.
Entities
Commodity Futures Trading Commission · Jennifer Davenport · Kalshi · New Jersey · Supreme Court of the United States · U.S. Supreme Court
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 9 SOURCES] New Jersey Attorney General Jennifer Davenport stated that Congress did not grant the sports-betting industry immunity from state law. defirate.com · www.theepochtimes.com · bitcoinethereumnews.com · kioncentralcoast.com · www.cryptobreaking.com · +1 more
- [● 9 SOURCES] The Ninth Circuit Court of Appeals ruled in favor of Nevada, allowing states to regulate prediction markets as sports betting. defirate.com · bitcoinethereumnews.com · www.npr.org · kioncentralcoast.com · blockcast.it · +2 more
- [● 9 SOURCES] The Third Circuit Court of Appeals ruled that Kalshi's event contracts are legally different from sportsbooks and fall under federal oversight. bitcoinethereumnews.com · www.npr.org · kioncentralcoast.com · blockcast.it · www.hawaiitribune-herald.com · +1 more
- [● 14 SOURCES] New Jersey filed a petition for a writ of certiorari with the U.S. Supreme Court on September 2. www.theepochtimes.com · www.cryptobreaking.com · www.npr.org · kioncentralcoast.com · blockcast.it · +6 more
- [● 7 SOURCES] Kalshi maintains that its sports products are event contracts governed by federal derivatives rules and the CFTC. www.cryptobreaking.com · blockcast.it · www.theepochtimes.com · bitcoinethereumnews.com · www.npr.org
- [○ 1 SOURCE] A Michigan court ordered Kalshi to pay $500,000 in daily fines for violating geofencing requirements. www.gaming.net