The time has come for this legal showdown.
The Supreme Court now has the opportunity to settle whether states possess the authority to regulate prediction markets as gambling.
According to Reuters, New Jersey is petitioning the Supreme Court to overturn an April 2026 decision by the U.S. Court of Appeals for the Third Circuit, which ruled that the Commodity Futures Trading Commission holds exclusive jurisdiction over sports-related event contracts offered by Kalshi.
Conversely, the U.S. Court of Appeals for the Ninth Circuit issued a contrasting ruling last week. This split between the two circuit courts serves as a crucial factor in persuading the Supreme Court to take up the case.
If the Court accepts the case, its ruling will establish binding precedent on whether wagering through prediction markets constitutes gambling.
