A coalition of US state lawmakers has thrown its weight behind New Jersey's effort to bring a prediction markets dispute before the Supreme Court. The National Council of Legislators from Gaming States filed an amicus brief on Tuesday supporting New Jersey's petition asking the nation's highest court to consider the case between state gaming authorities and prediction markets platform Kalshi.
The underlying dispute centers on a fundamental regulatory question: whether state authorities or federal agencies hold jurisdiction over prediction market companies. New Jersey's Attorney General and gaming authorities filed their petition for the Supreme Court to hear the case on September 2, following a decision from the US Court of Appeals for the Third Circuit.
In their filing, the state lawmakers argued that a ruling favoring Kalshi would leave states unable to regulate sports betting on prediction markets, potentially causing what they described as "substantial harm and confusion." The group contended that gaming-related matters should remain under the control of individual states.
The lawmakers raised concerns about broader implications if Kalshi prevails. "If Kalshi's self-described 'sports betting' activities are deemed beyond state regulation, then casinos, pari-mutuel operators, and other heavily regulated entities are certain to amend their business and products to seek the same status," they wrote in the filing. "Entire state regulatory regimes surrounding this vice activity will have to be reconsidered in light of any preemption found in this area."
Kalshi has until November 9 to file a response brief outlining its position. A company spokesperson previously indicated the platform could not operate under regulation by multiple state authorities.
