HARRISBURG – Attorney General Dave Sunday joined a bipartisan coalition in supporting New Jersey’s petition asking the U.S. Supreme Court to review whether prediction-market operator Kalshi can offer sports betting contracts without complying with state gambling laws.
The coalition is urging the Supreme Court to resolve growing conflict among federal appeals courts over whether states have the authority to regulate prediction markets that function like sports betting. Sports gambling is subjected to state gambling laws.
“Historically, the law has given states the purview to oversee gambling in their jurisdictions, and prediction markets should be subjected to that same oversight,” Attorney General Sunday said. “We are asking the nation’s highest court to provide that same deference to the states. It is our position that sports-related prediction markets should be viewed under the law as sports betting.”
Kalshi operates a prediction market that allows users to buy and sell contracts based on the outcome of various events. The company began offering sports-related contracts in 2025.
In April, the U.S. Court of Appeals for the Third Circuit – which has jurisdiction over Pennsylvania – ruled that the Commodity Futures Trading Commission has exclusive jurisdiction over Kalshi’s event contracts, limiting states’ ability to enforce their gambling laws against the company.
The U.S. Court of Appeals for the Ninth Circuit and for from the Sixth Circuit have reached a different conclusion in September, ruling that states may regulate prediction markets when the contracts function as gambling.
The conflicting decisions have created uncertainty for state regulators and raised questions about the ability of states to enforce their gambling laws against prediction-market operators.
The Office of Attorney General previously joined Ohio and 36 other attorneys general in an amicus brief before the Third Circuit and has participated in similar efforts before the Sixth and Ninth Circuits.
Joining Attorney General Sunday are attorneys general from 39 states.
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