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Story: New Jersey Seeks Supreme Court Review of Kalshi’s Controversial Sports Contracts

By Pankaj K

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A Legal Fight Spreading Across Six Circuits. It's not just New Jersey and Nevada driving this. The Fourth Circuit is sitting on an appeal from…

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CFTC Steps In, Kalshi Pushes Back. Kalshi isn't sitting still. The company intends to challenge the Ninth Circuit ruling, arguing…

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What Happens Next Is Anyone's Guess. The Supreme Court hasn't decided whether to take the case.

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New Jersey wants the Supreme Court involved. Attorney General Jennifer Davenport filed a petition asking the nation's highest court to step in and settle a growing legal mess…

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The trigger was a Ninth Circuit ruling handed down August 28. That court ruled unanimously that Kalshi's contracts don't fit the statutory scheme under federal law and could…

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That's a lot of courts. And each one could come back with something different.

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The Massachusetts case won't directly resolve the federal circuit split, but it adds noise to an already complicated picture.

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That inconsistency is basically unworkable long-term.

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See also: Kalshi Halts Betting on Its Supreme Court Fate Amid $500K Fine Threat from Michigan

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Kalshi isn't sitting still. The company intends to challenge the Ninth Circuit ruling, arguing that CFTC regulations don't prohibit sports contracts.

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The CFTC seems to agree, at least in part. The agency said it's concerned about how the Ninth Circuit read the statute and sees real potential for a circuit split that would need…

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And the CFTC has already shown it's willing to act fast when Kalshi's operations are threatened.

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No details yet on exactly how the CFTC plans to engage with the Supreme Court petition, if at all.

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The Supreme Court hasn't decided whether to take the case. Kalshi has 30 days to respond to New Jersey's petition.

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Related: Kalshi Sees 1,520% Traffic Surge as Supreme Court Weighs Sports Betting Legality

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