Supreme Court Extends Kalshi Response Deadline to November 9 Amid Circuit Split on Prediction Market Authority
Supreme Court extended Kalshi’s response deadline from October 8 to November 9 in New Jersey’s petition over a Third-Ninth Circuit split on CFTC versus state authority. DraftKings reported 2.5x volume growth, over 1 million users, and double-digit market share. Senate Democrats led by Elizabeth Warren seek a public hearing after volume hit $24 billion.
SCCG Take — Operators like DraftKings are scaling fast amid legal uncertainty, but a Supreme Court decision or congressional action could reset licensing and consumer protection requirements across the sector.
The U.S. Supreme Court granted Kalshi a 30-day extension to respond to New Jersey‘s petition challenging federal oversight of prediction markets. New Jersey filed its petition seeking to overturn the Third Circuit‘s 2-1 decision that placed event contracts under exclusive CFTC authority. The petition cites a conflicting ruling from the Ninth Circuit in a Nevada matter that treated Kalshi‘s sports-event contracts as traditional sports betting subject to state licensing.
Neal Kumar Katyal of Milbank reminded the court that New Jersey had already secured two 30-day filing extensions. Kalshi‘s opposition must now arrive by November 9. The Supreme Court granted the request without comment and is expected to decide later this year whether to accept the case. New Jersey argues that prediction market operators lack state gaming licenses and consumer protections for minors and problem gamblers.
DraftKings Reports Sharp Volume Increases
DraftKings CEO Jason Robins detailed rapid expansion in prediction markets during the Wells Fargo Ninth Annual Consumer Conference. Volume rose nearly 2.5 times from July to September and increased every week thereafter. More than 1 million customers have used the platform, a figure projected to reach multiple millions by the end of the NFL season. The offering commands nearly double-digits market share.
“It has only been a couple of weeks of NFL, so it’s still early, but we’re seeing tremendous trends,” Robins said. “Not just with prediction markets, but in the core business.” He added that the economics remain attractive because gross margins exceed those of sports betting despite lower hold percentages. Customers cross-sell into other DraftKings products at double-digit rates, supporting elevated marketing investment. Robins compared incoming competitors to the surge of sports betting operators in 2020, 2021, and 2022, stating the company welcomes the contest and will compete on product and experience.
Congressional Democrats Demand Public Hearing on Market Impacts
Elizabeth Warren and ten Democratic colleagues on the Senate Banking Committee urged Chairman Tim Scott to convene a public hearing on prediction markets. They criticized a recent Republican-only closed-door session that featured Kalshi executives and focused on securities-based event contracts. The senators cited trading volume growth from $5 billion in September 2025 to $24 billion in April 2026 per Pew Research Center data. December volume alone on Kalshi and Polymarket reached nearly $12 billion, a 400% year-over-year rise.
“It is critical that Congress examine prediction markets on a bipartisan basis in a public hearing, not behind closed doors in a Republican-only industry friendly roundtable,” their letter states. According to CDC Gaming, these parallel court, commercial, and legislative tracks leave operators and investors without a settled federal framework.
Reporting: CDC Gaming
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
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