New Jersey authorities have filed a petition with the Supreme Court to determine who will regulate sports betting in prediction markets.

State Attorney General Jennifer Davenport intends to appeal the appellate court’s ruling, which came down in favor of Kalshi. The motion is tied to New Jersey’s demand that the platform cease operations in the state due to violations of the state’s gambling laws.

The Supreme Court will decide who should regulate prediction markets: the federal agency CFTC or the states individually. The Court’s decision will form the basis for other legal disputes between the CFTC and the states over prediction markets. If the Court agrees to hear the case, a ruling is expected in the summer of 2027.