The U.S. Supreme Court has granted Kalshi’s motion for a 30-day extension to file its response to New Jersey’s court petition.
Kalshi’s brief in opposition was due October 8, but the response deadline is now November 9. Neal Kumar Katyal, an attorney with Milbank, reminded the Supreme Court that New Jersey received two 30-day extensions to file their petition.
The Supreme Court granted the extension without comment.
New Jersey filed their petition on September 2. State Attorney General Jennifer Davenport petitioned the high court to overturn the U.S. Circuit Court of Appeals for the Third Circuit’s decision from April.
The court in a 2-1 ruling favored Kalshi by concluding that federal regulators, specifically the Commodity Future Trading Commission (CFTC), have exclusive oversight over event and sports-event contracts, overriding state gaming regulations.
In the New Jersey filing, Davenport argued that a conflicting ruling in August by the U.S. Court of Appeals for the Ninth Circuit in a Nevada case created a clear circuit split. The Ninth Circuit ruled that Nevada retains the authority to regulate prediction markets and that Kalshi’s sports-event contracts function like traditional sports betting rather than federally regulated swaps.
New Jersey contends that prediction market companies like Kalshi are operating without a state gaming license and protections for minors and problem gamblers. Kalshi argues that it operates a nationwide financial exchange governed solely by federal law.
The Supreme Court is expected to decide later this year whether it will take up the case.
DraftKings sees fast growth, rising prediction market competition
DraftKings CEO Jason Robins used the Wells Fargo Ninth Annual Consumer Conference to present a case for the company’s growth, saying prediction markets are expanding rapidly, while its core sports betting business remains strong.
Robins also pointed to a recovery in igaming and said the company is positioned to benefit whether regulators or the courts allow prediction markets to keep going or force changes down the road.
“It has only been a couple of weeks of NFL, so it’s still early, but we’re seeing tremendous trends,” Robins said. “Not just with prediction markets, but in the core business.”
In terms of prediction markets, Robins said volume rose nearly 2.5 times from July to September and was increasing every week, with more than 1 million customers having used its prediction platform. The company expects that number to reach multiple millions by the end of the NFL season and its offering has nearly double-digits market share in sports prediction markets.
“(It’s) trending higher every week and has really seen great positioning from a competitive standpoint,” Robins said.
Robins also said the economics of prediction markets are attractive, even with lower hold rates and lower net-revenue margins than sports betting, since the gross margins are higher. In addition, prediction market customers are cross-selling into other DraftKings products at double-digit percentages, allowing the company to evaluate higher marketing spend in prediction market states.
He also addressed competition, saying new rivals are entering the market in a way that reminded him of the online sports betting landscape in 2020, 2021, and 2022.
“A lot of competitors out there think they can have material share,” Robins said. “We welcome that. We love competition. We’ve dealt with that in every single vertical we have and again our strategy has always been to win on our offering, product, and customer experience. Ultimately, that’s what wins.”
Senate Banking Democrats seek public hearing on prediction markets
Massachusetts Democratic Senator Elizabeth Warren, ranking member on the Senate Committee on Banking, Housing and Urban Affairs, along with 10 of her committee Democratic colleagues, has called for a public hearing on prediction markets.
Warren and her colleagues criticized Committee Chairman Tim Scott, a Republican from South Carolina, for hosting a Republican-only prediction market hearing.
Punchbowl News reported the closed-door session this week focused on securities-based event contracts, with Kalshi executives expected to attend.
“It is important for the Senate Banking Committee to hold a public hearing about how these markets are impacting consumers and our financial system,” the letter reads.
Prediction markets have experienced rapid growth in recent years, with total trading volume jumping from $5 billion in September 2025 to $24 billion in April 2026, according to the Pew Research Center.
In their letter, the senators noted that in December alone last year, individuals traded nearly $12 billion on Kalshi and Polymarket, a 400% increase in trades compared to the previous year.
“It is critical that Congress examine prediction markets on a bipartisan basis in a public hearing, not behind closed doors in a Republican-only industry friendly roundtable,” the letter reads.
