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Jennifer Davenport asks Supreme Court to resolve nationwide dispute over state regulation of prediction markets

New Jersey Attorney General Jennifer Davenport has petitioned the Supreme Court to determine whether states can regulate sports betting on prediction markets. The request follows a circuit split where the 3rd U.S. Circuit Court of Appeals ruled that federal regulators have exclusive jurisdiction over these markets, while the 9th U.S. Circuit Court of Appeals ruled that states can regulate them as sports betting. New Jersey argues that if prediction markets are considered swaps, they should not be exempt from state gambling laws. Conversely, the prediction platform Kalshi maintains that it is a financial exchange regulated by the Commodity Futures Trading Commission (CFTC) and should not be subject to 50 different state regulators. The administration has supported the growth of prediction markets, and the CFTC has filed lawsuits against several states to block state-level oversight. The Supreme Court will likely consider whether to hear the case later this fall. If the court accepts the petition, a decision is expected by the start of next summer.

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