A coalition of 34 states, along with D.C. and the Northern Mariana Islands, is urging a federal appeals court to reject what they describe as a legal sleight of hand — one that allows companies like Kalshi to sidestep state gambling laws by rebranding sports betting as “event contracts” on federally regulated exchanges.
In an amicus brief filed Tuesday in the Third Circuit Court of Appeals, the states backed New Jersey in its ongoing legal fight with Kalshi, a platform that lets users wager on outcomes — as outlined in the brief — like whether the Pittsburgh Steelers will win more than eight games or if the Ravens will win the Super Bowl. Kalshi calls these trades “event contracts.” The states call it sports betting.
“Stripping away the semantics, this case most directly concerns gambling on sports,” according to the brief, which is led by Nevada Attorney General Aaron Ford and Ohio Attorney General Dave Yost.
