New Jersey Petitions Supreme Court on Prediction Market Jurisdiction
New Jersey Attorney General Jennifer Davenport seeks Supreme Court review of state versus federal authority over prediction markets amid CFTC preemption claims.
New Jersey Attorney General Jennifer Davenport issued a statement calling for U.S. Supreme Court review of whether states retain authority to regulate prediction markets or whether federal jurisdiction preempts state law.
The CFTC has asserted federal jurisdiction over prediction markets and has filed lawsuits against states that attempted to regulate or ban platforms including Kalshi and Polymarket.
Kalshi stated that it operates as a nationwide financial exchange and cannot be subject to regulation by 50 separate state regulators.
Forty-four states have asserted that Kalshi and Polymarket operate illegal sports-betting or gambling platforms within their jurisdictions.
Open questions
It remains unknown whether the Supreme Court will grant review of the petition.