The National Council of Legislators from Gaming States (NCLGS) has filed a petition on prediction markets with the Supreme Court.

They are seeking review of the case “New Jersey v. Kalshi.” The Court’s decision will determine who is authorized to regulate sports prediction markets — the states or the CFTC. NCLGS argues that casinos, sportsbooks, and other entities regulated at the state level could exploit regulatory loopholes. They are transforming their business models and products to obtain similar, less stringent CFTC oversight.

NCLGS emphasizes that if the Court rules against them, the states will have to completely overhaul industry regulation. Kalshi must submit its brief outlining its position in the case by November 9.