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- The NFL, 39 states and Washington, DC, have urged the U.S. Supreme Court to review a ruling protecting Kalshi's sports prediction contracts.
- The NFL stated that about $1.8 billion of the $3.3 billion traded across prediction markets on the first Sunday of the NFL season involved NFL-related events.
- Kalshi must respond to New Jersey's petition by November 9 before the Supreme Court decides whether to hear the case.
The NFL, 39 states and Washington, DC, have urged the U.S. Supreme Court to review a legal fight over whether states can apply gambling laws to sports prediction contracts offered by federally regulated platforms such as Kalshi.
The new briefs, filed on Oct. 7 and Oct. 8, support New Jersey’s petition asking the justices to review a lower-court ruling that currently protects Kalshi’s sports markets from conflicting state gambling restrictions.
New Jersey Challenges Kalshi’s Federal Protection From State Gambling Laws
New Jersey ordered Kalshi to stop offering sports contracts in the state in 2025, arguing that the products violated gambling laws, including restrictions on collegiate sports betting.
Kalshi sued and won a preliminary injunction. The Third Circuit upheld that order in April, finding at the preliminary stage that Kalshi was likely to prevail on its argument that federal law gives the Commodity Futures Trading Commission exclusive jurisdiction over the contracts.
New Jersey filed its Supreme Court petition on Sept. 2, asking the justices to overturn that interpretation.
NFL Says $1.8B of $3.3B Prediction Volume Involved NFL Events
Ohio and 38 other states, along with Washington, DC, filed a brief supporting Supreme Court review on Oct. 7.
The NFL followed on Oct. 8, arguing that sports prediction contracts function more like gambling products than conventional financial derivatives. The league said about $1.8 billion of the $3.3 billion traded across prediction markets on the first Sunday of the NFL season involved NFL-related events.
A separate coalition of 145 tribal governments and organizations has also urged the Court to hear the dispute. Former CFTC Chair Gary Gensler and former Senator Christopher Dodd filed additional briefs supporting review.
Kalshi has Until November 9 to Respond Before Court Decides On Review
Kalshi maintains that its event contracts fall under the Commodity Exchange Act and that states cannot independently prohibit products traded on its federally licensed market.
Its response to New Jersey’s petition is due Nov. 9 after the Supreme Court extended the original Oct. 8 deadline. The justices have not agreed to hear the case.
If they grant review, the dispute could clarify the boundary between federal derivatives regulation and state gambling laws for sports prediction markets.
