The request follows lower court rulings on oversight of the prediction firms.<\/p>\n
New Jersey has asked the Supreme Court to weigh in on a nationwidelegal battlepitting dozens of states against onlineprediction markets.<\/p>\n
The request this week arrived days after the9th U.S. Circuit Court of Appeals ruledAug. 28 against platforms like Kalshi, rejecting their requests to prevent state-level oversight from a Nevada regulatory agency. In that case, the court found Kalshi “did not show a likelihood” that federal regulation supersedes state officials in the oversight of sports-related events contracts on prediction markets. The finding challenged the firm’s assertion that such contracts qualify as financial instruments policed by the federal government.<\/p>\n
The ruling in Nevada contrasts with adecision issued in Aprilby the 3rd U.S. Circuit Court of Appeals, which sided with Kalshi in its lawsuit against New Jersey, finding that federal regulators retain exclusive oversight of prediction markets, including sports-related contracts.<\/p>\n
Officials in states with both Republican- and Democrat-controlled governments havemovedto regulate or ban prediction markets in recent months, invoking their statutory authority to police sports gambling, which they claim prediction markets facilitate.<\/p>\n
In response, the prediction platforms have argued that their sports-related contracts are not gambling, but rather a type of derivative called a swap, and as such is solely regulated by the Commodity Futures Trading Commission (CFTC), a federal agency.<\/p>\n
In herrequestfor a Supreme Court hearing, New Jersey Attorney General Jennifer Davenport said the divide between the 9th and 3rd Circuit courts holds “tremendous importance.”<\/p>\n
“It will determine whether a multi-billion-dollar gaming industry can suddenly operate free from state sports-gaming laws,” Davenport added, further noting that New Jersey has regulated sports wagers for more than 100 years.<\/p>\n
In a statement to ABC News, Kalshi criticized New Jersey’s request for a hearing at the Supreme Court.<\/p>\n
\u201cWe disagree with New Jersey’s filing. Kalshi is an open, nationwide financial exchange. It cannot be regulated by 50 different regulators. Both the Third Circuit and the District of New Jersey sided with Kalshi because the CFTC’s exclusive jurisdiction preempts state law,” Kalshi spokesperson Dani Lever said.<\/p>\n
“While New Jersey points to a recent decision in the Ninth Circuit, that decision agreed with that key principle. Where it differed, it did so based on a regulation that’s in the process ofbeing rewritten.We remain confident in the lower courts’ rulings, and nothing in New Jersey’s filing today changes our view,” Lever added.<\/p>\n
Source: ABC News<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" The request follows lower court rulings on oversight of the prediction firms. New Jersey has asked the Supreme Court to weigh in on a nationwidelegal battlepitting dozens of states against onlineprediction markets. The request this week arrived days after the9th U.S. Circuit Court of Appeals ruledAug. 28 against platforms like Kalshi, rejecting their requests to […]<\/p>\n","protected":false},"author":4,"featured_media":1289,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-1290","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/god-bless-usa.com\/en\/wp-json\/wp\/v2\/posts\/1290","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/god-bless-usa.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/god-bless-usa.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/god-bless-usa.com\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/god-bless-usa.com\/en\/wp-json\/wp\/v2\/comments?post=1290"}],"version-history":[{"count":0,"href":"https:\/\/god-bless-usa.com\/en\/wp-json\/wp\/v2\/posts\/1290\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/god-bless-usa.com\/en\/wp-json\/wp\/v2\/media\/1289"}],"wp:attachment":[{"href":"https:\/\/god-bless-usa.com\/en\/wp-json\/wp\/v2\/media?parent=1290"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/god-bless-usa.com\/en\/wp-json\/wp\/v2\/categories?post=1290"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/god-bless-usa.com\/en\/wp-json\/wp\/v2\/tags?post=1290"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}