New Jersey drags Supreme Court into prediction market regulation clash

New Jersey has petitioned the US Supreme Court to allow states to classify prediction markets like Kalshi and Polymarket as gambling. The fight has been going on for two years now, and it’s getting to the Justices of the Supreme Court for the first time. 

The petition came in on Wednesday, and a ruling by the apex court would settle the dispute as to whether this billion-dollar industry will be regulated by state gaming regulators or by a single federal agency. 

Davenport wants Congress read narrowly, not the CFTC 

The petitioners ask the justices to overturn a Third Circuit court based in Philadelphia, which ruled that the Commodity Futures Trading Commission (CFTC) has exclusive powers to regulate platforms like Kalshi and Polymarket, overriding the gambling laws of the state of New Jersey. 

Jennifer Davenport, the State Attorney General, a Democrat, says the case is simply about stopping federal overreach. “We’re calling on the Supreme Court to resolve this issue and recognize that Congress did not silently make the sports-betting industry immune from state law,” she said in a statement. 

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