New Jersey Asks Supreme Court to Settle Jurisdictional Fight Over Prediction Markets

RegulationDigital Finance
โดย NADA NEWS·US·Read original
Summary · why it matters

New Jersey on September 2 brought its jurisdictional dispute with the federal government over prediction markets to the U.S. Supreme Court. State Attorney General Jennifer Davenport and Mary Jo Flaherty, acting director of the Division of Gaming Enforcement, filed a petition seeking permission to appeal regarding enforcement actions against the prediction market Kalshi. The state lost in the appellate court, and this is believed to be the first time the legality of this business model has been put before the Supreme Court. Lawsuits brought by companies like Kalshi and the CFTC, or that forced states to sue, number at least 39 across 20 states, with states asking whether prediction market companies can comply with CFTC regulations while violating state law. The issue is whether the 2010 Dodd-Frank Act stripped states of regulatory authority over sports betting on CFTC-registered markets. The Third Circuit Court of Appeals ruled 2-1 in favor of Kalshi in April, but on August 28 the Ninth Circuit ruled 3-0 for the states, creating a split. Davenport said, "These companies have no right to offer sports gambling without following state law," while Kalshi spokesperson Dani Lever countered, "It's impossible to be regulated by 50 different regulators." According to the states, national sports betting revenue in 2025, excluding tribal casinos, reached $16.89 billion, and the lawsuits involve not only Kalshi but also Coinbase, Polymarket, and Robinhood. The Supreme Court's decision could affect the entire prediction market industry, including crypto-related companies.

Impact on stocks 2

Digital Finance & Tokenization▲ · 2 stocks
Coinbase Global Inc
COIN
± MixedRegulationrelevance

Coinbase is mentioned as involved in prediction market lawsuits, but the Supreme Court case outcome is uncertain.

Robinhood Markets Inc
HOOD
± MixedRegulationrelevance

Robinhood is mentioned as involved in prediction market lawsuits, but the Supreme Court case outcome is uncertain.

Theme Impact 1

Off-coverage companies 2

KalshiPrivate± Mixed
Regulationrelevance

Kalshi is the subject of the jurisdictional dispute; the Supreme Court decision will determine its regulatory landscape.

PolymarketPrivate± Mixed
Regulationrelevance

Polymarket is mentioned as involved in prediction market lawsuits, but the Supreme Court case outcome is uncertain.

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