New Jersey Files Supreme Court Petition on Kalshi Sports Contracts
New Jersey Attorney General seeks Supreme Court review of Third Circuit ruling on CFTC preemption of state gambling laws for prediction market contracts.
New Jersey Attorney General Jennifer Davenport and Division of Gaming Enforcement Interim Director Mary Jo Flaherty filed a petition for a writ of certiorari on Sept. 2. The filing challenges the Third Circuit’s April ruling in KalshiEX LLC v. Flaherty that blocked the state from enforcing its gambling laws against Kalshi’s sports event contracts.
The petition asks whether the Commodity Exchange Act, as amended by Dodd-Frank, prevents states from applying their gambling statutes to sports contracts traded on CFTC-registered exchanges.
Next steps
The filing points to conflicting appellate decisions. The Third Circuit favored federal preemption for Kalshi. The Ninth Circuit upheld Nevada’s authority in a parallel case decided Aug. 28.
The Supreme Court has not granted review. Whether the Court accepts the petition and any eventual ruling remain unknown.