NEW Jersey

The National Football League has joined states, tribes and former regulators in opposing exclusive federal oversight of prediction markets tied to sports events. The dispute places Kalshi, Polymarket and the CFTC at the center of a high-stakes legal fight over who should regulate sports-related event contracts.

Kalshi suffered a major legal blow after a federal appeals court in Nevada rejected its argument that state gaming regulators lack authority over its sports event contracts. The decision conflicts with another federal court outcome involving New Jersey, increasing the likelihood that the U.S. Supreme Court may eventually be asked to resolve the dispute.

Connecticut has sued Kalshi in a bid to halt the platform’s sports event contracts in the state, intensifying a broader legal clash over prediction markets. With state and federal courts issuing mixed decisions, the fight is increasingly framed as one that could eventually reach the U.S. Supreme Court.

Kalshi and the wider prediction market sector are fighting state regulators over whether event contracts should be treated as derivatives or gambling. Recent developments in Nevada, Michigan, Ohio, Minnesota, North Carolina and New Jersey show a fast-moving legal map with major implications for the industry.