New Jersey Attorney General Jennifer Davenport and Mary Jo Flaherty, the acting head of the state’s gaming enforcement division, have filed a petition for certiorari with the U.S. Supreme Court in a case tied to enforcement against prediction market platform Kalshi over sports event contracts. The petition points to civil cases brought by at least 20 state gaming regulators and asks the court to decide whether a prediction market company can still violate state law even if it complies with rules set by the U.S. Commodity Futures Trading Commission, or CFTC. It also raises the question of whether the Dodd-Frank Act preempts state authority over sports betting within state regulatory jurisdictions. The filing challenges a 2-1 ruling issued by the U.S. Court of Appeals for the Third Circuit in April. Kalshi spokesperson Dani Lever said the company disagrees with New Jersey’s appeal to the Supreme Court, argued that Kalshi cannot operate under oversight from 50 separate regulators, and said the firm remains confident in the lower court ruling.
New Jersey Attorney General Jennifer Davenport and Mary Jo Flaherty, the acting chief of the state’s gaming enforcement division, have filed a petition for certiorari with the U.S. Supreme Court, asking it to review the state’s enforcement case against prediction market platform Kalshi over sports event contracts.
The petition cites civil cases brought by at least 20 state gaming regulators. It asks the Supreme Court to decide whether a prediction market company could still be in violation of state law while complying with rules set by the U.S. Commodity Futures Trading Commission, or CFTC.
The filing also raises the question of whether the Dodd-Frank Act preempts state authority over sports betting within their regulatory jurisdictions. It challenges a 2-1 decision issued by the U.S. Court of Appeals for the Third Circuit in April.
Kalshi spokesperson Dani Lever said the company disagrees with New Jersey’s appeal to the Supreme Court and said Kalshi cannot accept being regulated separately by 50 regulators. Lever also said the company remains confident in the lower court’s ruling.
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