New Jersey is asking the U.S. Supreme Court to decide whether federal law preempts states from regulating the prediction market platform Kalshi.
In a Wednesday petition to the high court, the state asserts Kalshi has found a federal back door into sports betting, allowing the company to avoid licensing rules, taxes and consumer protections set by individual states.
“Companies like Kalshi claim to offer legal sports betting in all 50 States, but they refuse to follow the gambling laws of any State,” Jennifer Davenport, the New Jersey attorney general, said in a news release.