New Jersey attorney general petitions Supreme Court amid circuit split over Kalshi’s sports contracts and under‑21 trading
The Ninth Circuit Court of Appeals ruled that Nevada’s gambling laws apply to Kalshi’s sports‑event contracts, rejecting the platform’s claim that the Commodity Exchange Act preempts state regulation. The Third Circuit reached the opposite conclusion, holding that federal law governs such contracts. New Jersey’s attorney general has filed a petition with the nation’s highest court seeking resolution of the split. New York has sued Kalvi, alleging the platform exploits an age loophole that lets users aged 18 to 21 trade, noting that those users generated $5.4 billion in trades this year, including $3.9 billion on sports contracts.
How this was covered
- Left-leaning outlets covered this 5h later
Why it matters
The outcome will determine whether state gambling rules or federal financial regulations control prediction‑market platforms that allow under‑21 users to bet on sports.
How this story developed
- Aug 28 The Ninth Circuit panel issued its decision rejecting Kalshi's bid to block Nevada regulation.
- Sep 1 New York filed a lawsuit seeking to close the age loophole that lets under‑21 users trade on the platform.
- Sep 3 New Jersey’s attorney general filed a petition with the Supreme Court to resolve the conflicting appellate rulings.
