New Jersey yesterday asked the Supreme Court to rule on whether states can regulate sports betting on prediction markets such as Kalshi.

“Companies like Kalshi claim to offer legal sports betting in all 50 states, but they refuse to follow the gambling laws of any state," New Jersey Attorney General Jennifer Davenport said in a press release announcing the lawsuit.

In April, the US Court of Appeals for the 3rd Circuit ruled that New Jersey cannot regulate sports bets on prediction markets. The court determined that sports-related event contracts meet the legal definition of "swaps," giving the US Commodity Futures Trading Commission (CFTC) exclusive jurisdiction.

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Kalshi today lost a major ruling over whether it can evade state gambling laws, as a federal appeals court found that Nevada can stop the prediction market from allowing sports bets. While the Trump administration is trying to help prediction markets avoid state regulation, a panel of three Trump-appointed judges unanimously ruled against Kalshi in today's decision from the US Court of Appeals for the 9th Circuit.

The Nevada Gaming Control Board today said the 9th Circuit "emphatically reject[ed] the view that the federal Commodity Exchange Act preempts application of Nevada’s gaming laws to sports-event contracts offered by Kalshi, Crypto.com, and Robinhood." Nevada Governor Joe Lombardo, a Republican, said that "prediction markets offering sports-event contracts constitute gambling and must comply with Nevada’s gaming laws and regulatory framework."

The judges affirmed a district court order that let Nevada enforce state laws against Kalshi’s sports-related event contracts.

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