38 States and D.C. Urge Supreme Court to Address Regulation of Prediction Markets
Attorneys general from 38 states and the District of Columbia have filed an amicus brief urging the U.S. Supreme Court to affirm state authority over sports gambling, rather than allowing federal oversight by the Commodity Futures Trading Commission (CFTC). The case centers on whether prediction markets—such as those offered by Kalshi—are subject to federal commodity regulations or fall under states' jurisdiction for gaming and betting activities. The brief argues that if the Supreme Court does not clarify this regulatory divide, it could lead to a patchwork of conflicting state laws and undermine consumer protection. The case has drawn significant attention due to its potential implications on how new financial technologies are regulated in the U.S., particularly as prediction markets expand beyond traditional sports betting into political and economic events. The outcome may influence future innovation in speculative trading platforms, with states potentially having more control over licensing and enforcement.
