New Jersey on Wednesday asked the Supreme Court to shut down prediction markets in the state, teeing up a potential landmark case where the justices could decide if the highly popular but controversial industry can survive in its current form.
This is the first time the nationwide legal battle over the legality of prediction sites has reached the Supreme Court, and it comes after a string of recent rulings against the companies, including from a federal appeals court.
The high court will likely consider later this fall whether to hear the case. If it does so, then the court would likely hand down a decision by the start of next summer.
Prediction sites like Kalshi and Polymarket let people bet on real-world events like sports, elections, entertainment, the weather and more. They’re structured as financial derivatives markets – not gambling – and are regulated federally by the Commodity Futures Trading Commission.
However, a bipartisan coalition of 44 states have argued that these platforms are, in fact, gambling. They believe prediction companies are running unlicensed sportsbooks, unlawfully skirting state gaming regulations that impose consumer protections and bring in billions in state tax revenue.
