NJ urges SCOTUS to rule that Kalshi sports bets are gambling, not "swaps"
Summary
New Jersey has asked the U.S. Supreme Court to decide if states can regulate sports betting on prediction markets like Kalshi. The case involves whether these bets are considered “swaps” controlled by federal law or gambling regulated by state laws.Key Facts
- New Jersey’s Attorney General filed a petition asking the Supreme Court to review a lower court ruling.
- The 3rd Circuit Court ruled that sports bets on prediction markets are “swaps,” giving federal regulators exclusive control.
- The 9th Circuit Court disagreed, saying such bets are actually gambling and should follow state laws.
- This disagreement between courts raises the chance the Supreme Court will take the case.
- Kalshi allows people to bet on sports outcomes but calls these bets “swaps” to avoid state gambling laws.
- New Jersey bans betting on college sports and regulates gambling, but cannot enforce laws against Kalshi due to the court rulings.
- The legal question involves the 2010 Dodd-Frank Act, which defines “swaps” and gives the Commodity Futures Trading Commission control over them.
- New Jersey argues that allowing Kalshi to operate without state oversight harms states’ ability to control their sports gambling markets.
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