New Jersey is asking the U.S. Supreme Court to settle, once and for all, how sports betting on prediction markets should be regulated as tensions between states and the federal government continue to escalate.
On Wednesday, New Jersey Attorney General Jennifer Davenport filed a 332-page petition for a writ of certiorari, a formal request asking the Supreme Court to review a lower court’s decision. The petition stems from a case that began last year, when New Jersey sent prediction markets platform Kalshi a cease-and-desist letter alleging that the company was violating the state’s gambling laws.
Kalshi subsequently sued New Jersey, and the case eventually reached the U.S. Court of Appeals for the Third Circuit, which ruled in Kalshi’s favor.
Now, New Jersey is asking the Supreme Court to take up the case. The justices will have to decide whether to grant the petition and hear the dispute.
"States have long adopted careful laws to regulate gambling, including to prevent compulsive gambling, gambling by minors, and insider trading on sports games," Davenport said in a statement. "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."
