New Jersey Asks Supreme Court to Settle 44-State Prediction Market Oversight Fight
Updated
Updated · CNBC · Sep 2
New Jersey Asks Supreme Court to Settle 44-State Prediction Market Oversight Fight
3 articles · Updated · CNBC · Sep 2
Summary
New Jersey petitioned the Supreme Court to review an April 3rd Circuit ruling that treated all event contracts as federally regulated derivatives, arguing sports-betting platforms should not be shielded from state law.
Friday's 9th Circuit decision sharpened the dispute by ruling sports-related event contracts are not CFTC-regulated swaps and by rejecting Kalshi and Crypto.com's bid to block Nevada regulators.
Kalshi said it remains confident because lower courts in New Jersey sided with its view that a CFTC-registered exchange cannot be governed by 50 different state regulators.
The clash now pits the CFTC's position against 44 state attorneys general who say sports-related prediction contracts are effectively sports betting and belong under state oversight.
Markets read New Jersey's filing as favorable for traditional sportsbooks, sending DraftKings and Flutter Entertainment shares up more than 5%, though Bank of America said the Supreme Court may wait until 2027 as other circuit cases proceed.