US gaming lawmakers urge Supreme Court to hear Kalshi case
The National Council of Legislators from Gaming States (NCLGS) has urged the US Supreme Court to review a dispute over whether states can regulate sports event contracts.
According to reports, the group of US state lawmakers filed an amicus brief earlier this week, backing New Jersey’s Attorney General Jennifer Davenport’s petition for a writ of “certiorari,” which asks the Supreme Court to hear the case involving prediction market platform Kalshi.
The dispute centers on Kalshi’s sports event contracts and whether they fall under the federal oversight of the Commodity Futures Trading Commission (CFTC) or state gambling regulators.
In its filing, the NCLGS said a ruling that prevents states from regulating prediction markets like Kalshi could affect existing gambling laws and allow other gambling operators to seek similar treatment of their businesses and products.
While the petition didn’t address the CFTC’s asserted jurisdiction over federally regulated event contracts, the group maintained that state authorities should retain control over “gaming-related matters”.
Davenport asked the Supreme Court to intervene earlier this month, escalating the dispute to the country’s highest court. The case follows a ruling by the US Third Circuit Court of Appeals that found that Kalshi’s contracts fall under federal regulations.
The debate has also drawn attention from Congress, with Democrats on the Senate Banking Committee calling for a congressional hearing on prediction markets, while Chairman Sen. Tim Scott and committee Republicans met privately with Kalshi’s Chief Executive, Tarek Mansour.