New Jersey asks the Supreme Court to take on prediction markets
The petition comes after a key ruling from the 9th U.S. Circuit Court of Appeals on sports-event contracts.
TL;DR
- New Jersey is asking the Supreme Court to decide which regulator has authority over prediction markets and sports-related event contracts.
- This comes after the 3rd U.S. Circuit Court of Appeals ruled event contracts are CFTC-regulated 'swaps', contrasting with a 9th U.S. Circuit Court of Appeals ruling that sports-related contracts are not swaps.
- New Jersey's attorney general stated that Congress did not intend to make the sports-betting industry immune from state law.
- Kalshi, a prediction market platform, disagrees with New Jersey, asserting its platform is a financial exchange with exclusive CFTC jurisdiction that preempts state law.
- While the CFTC considers these contracts 'swaps,' 44 state attorneys general believe they are sports betting under state purview.
- The conflicting circuit court rulings create an opportunity for the Supreme Court to review the regulatory jurisdiction.