New Jersey asked the U.S. Supreme Court on Sept. 2 to decide whether states have the authority to regulate sports betting that takes place on prediction markets operated by Kalshi and its competitors.
Kalshi, which was recently valued at $22 billion, has been the focus of an intensifying legal battle over the ability of state gaming regulators to police businesses in the rapidly expanding prediction markets sector.
States argue that firms like Kalshi are operating platforms that allow bets without required state licenses and in the process violating state gaming laws, including prohibitions on wagers by individuals under the age of 21.
The specific issue, according to the Garden State, is whether prediction markets may offer sports wagers without having to follow state sports-gambling laws—that is, whether Congress removed state authority over gambling on these platforms….