The North American Gaming Regulators Association (NAGRA) and International Association of Gaming Regulators (IAGR) have asked the US Supreme Court to review a dispute over whether sports event prediction market contracts are subject to state gambling laws.
In their joint amicus brief supporting the review of the Flaherty v. Kalshi case, the associations argue that conflicting decisions from federal appeals courts have created uncertainty over the respective authority of the Commodity Futures Trading Commission (CFTC) and state gambling regulators.
The US Court of Appeals for the Third Circuit ruled in April this year that federal law likely prevents New Jersey from applying its sports betting regulations to prediction market Kalshi’s sports event contracts, finding that the CFTC has exclusive jurisdiction over the products.
