New Jersey asks Supreme Court to settle prediction-market powers

New Jersey has become the first state to petition the U.S. Supreme Court to weigh in on prediction markets, after multiple federal appeals courts split on whether states can regulate sports- and event-related products. The move escalates the legal fight over who can police event contracts to the top court, where New Jersey argues a ruling is needed to resolve the circuit split.

The petition follows a court loss for Kalshi in which states were affirmed as having authority over prediction markets, and comes as the CFTC pursues its own new rules for the sector.