New Jersey asks Supreme Court to classify Kalshi sports contracts as gambling

New Jersey has urged the U.S. Supreme Court to rule that prediction market platform Kalshi's sports event contracts constitute gambling rather than financial 'swaps.' The case centers on whether such contracts fall under federal commodities law, which would shield them from state gambling regulations. A circuit split between federal appeals courts has increased the likelihood that the Supreme Court will take up the case. The outcome could determine whether states retain authority to regulate sports prediction markets or whether federal oversight preempts them.