New Jersey Petitions Supreme Court to Place Prediction Markets Under State Gambling Laws

New Jersey has petitioned the U.S. Supreme Court to settle whether states or the federal CFTC regulates sports-related prediction market contracts. In a statement, New Jersey Attorney General Jennifer Davenport said prediction markets had: “No right to offer their sports bets without following state law, which is why dozens of States across the ideological spectrum have opposed them.” She added: “We’re calling on the Supreme Court to resolve this issue and recognize that Congress did not silently make the sports-betting industry immune from state law.”

Support From States and NFL Amid Circuit Split

Attorneys general from 39 states and the NFL filed amicus briefs backing the petition, according to iGaming Future. The NFL argued the CFTC lacks resources to regulate sports contracts. The Third, Sixth, and Ninth U.S. Circuit Courts of Appeals have issued conflicting rulings, creating a circuit split that bolsters the case for review. Legal expert Daniel Wallach said it may be December before it is known if the Court will hear the case.

Tribal Deals and Ohio Enforcement

On October 7, four tribes launched prediction market apps powered by Kalshi, a US$20 billion company, despite recent tribal calls for unity against these markets. The Kletsel Dehe Wintun Nation, Greenville Rancheria, Alturas Indian Rancheria, and Alabama-Quassarte Tribal Town moved forward. Eric Wright, administrator for the Kletsel Dehe Wintun Nation, cited limited resources: “We aren’t a big gaming Tribe that has a ton of economic dollars lying around.” He added that “At its core, this is about Tribal sovereignty and economic self-determination” and that other tribes “don’t have veto power over our economic future.” Kalshi CEO Tarek Mansour offered an alternative vision for unity: “Prediction markets and Tribal economic development don’t have to be at odds,” said the wunderkind. “The future of this industry […] can be organized around opportunity.”

Separately, the Ohio Casino Control Commission issued 10 cease-and-desist letters to platforms including Coinbase, Novig, Polymarket, Prophet X, Robinhood, and Underdog, with 14 days to cease trading following a Sixth Circuit ruling.

The Jurisdiction Stakes for Operators

The petition, support from 39 states and the NFL, tribal actions, and enforcement steps highlight deepening divides over whether prediction markets face state-by-state gambling rules or federal commodity oversight. A Supreme Court decision to take the case would force operators to reassess expansion under whichever framework prevails, while tribes weigh sovereignty against collective industry positions.

Reporting: iGaming Future

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