Nevada vs. Prediction Markets: NJ Takes Fight to SCOTUS

Nevada gaming regulators sharpened their stance against prediction markets this week, even as New Jersey took its fight to the US Supreme Court. At a Wednesday meeting in Carson City, Nevada Gaming Control Board Chairman Mike Dreitzer delivered one of the board's strongest statements yet against companies like Kalshi. The same day, New Jersey Attorney General Jennifer Davenport filed a petition asking the nation's highest court to settle who regulates sports event contracts. Kalshi, the operator at the center of both disputes, has signaled it will keep fighting on every front.

Nevada Regulator Slams Prediction Markets as Illegal

Dreitzer told board members that prediction markets amount to gambling, regardless of how operators describe their products. He argued that companies bypassing state licensing put consumers at risk without proper oversight. The board's opposition to sports event contracts has been consistent, he said, and centers on protecting consumers through proper regulation.

Dreitzer described Nevada's licensing system as covering suitability, anti-money laundering, taxation, and safeguards against underage gambling, protections prediction markets currently sidestep.

His comments followed the Ninth Circuit's late-August ruling, which found that Nevada's gambling law was not preempted by federal commodities trading law in regulating sports event contracts.

New Jersey Asks Supreme Court to Rule on Kalshi

New Jersey escalated its own battle that same day. Attorney General Jennifer Davenport filed a petition asking the US Supreme Court to decide whether prediction markets can offer sports wagers without following state gambling laws. Officials called it the first such petition to reach the justices. The 332-page filing followed a case that began when New Jersey sent Kalshi a cease-and-desist letter alleging violations of state gambling law. Davenport said, "These companies have no right to offer their sports bets without following state law." She noted that litigation has spread across at least 20 states.

Circuit Court Split Deepens Prediction Market Fight

New Jersey's petition follows a widening split between federal appeals courts. The Third Circuit ruled 2-1 in favor of Kalshi against New Jersey in April, finding federal law preempted the state's restrictions. In August, the Ninth Circuit reached the opposite conclusion for Nevada, deepening that conflict. The split raises the odds the Supreme Court will eventually resolve the dispute nationwide. A Kalshi spokesperson said the company disagrees with New Jersey's filing. Regulators in other states are watching closely, because the outcome could determine whether prediction markets need state licenses at all.