Gaming regulators back New Jersey in Kalshi Supreme Court bid
IAGR and NAGRA file a second amicus brief urging justices to resolve a split over state gambling authority and federal event contracts.
Two gaming regulator groups have urged the US Supreme Court to hear New Jersey's case against Kalshi, arguing federal commodities law does not automatically shield sports event contracts from state gambling rules. In a joint amicus brief filed October 2 in Flaherty v. KalshiEX, the International Association of Gaming Regulators and the North American Gaming Regulators Association said the Commodity Exchange Act should not exempt a sports wager merely because a CFTC-registered exchange lists it as an event contract. It is the second brief backing New Jersey's September petition; the National Council of Legislators from Gaming States filed the first on September 22.
The groups cited conflicting appellate rulings: the Third Circuit sided with Kalshi in April, while the Sixth and Ninth Circuits backed state authority. The Ninth Circuit ruled on August 28 that Nevada gaming laws apply to sports event contracts, and the Sixth Circuit on September 25 upheld an injunction denial in Ohio and vacated one in Tennessee. The Fourth and Second Circuits have not ruled.
Gaming attorney Daniel Wallach projected the justices could agree to hear the matter in December 2026 or January 2027, with arguments in March or April and a decision by June 2027. He called that the quickest scenario and said a later outcome is at least as plausible, with a ruling possibly in 2028 if the Court does not accept the cases by early next year. He estimated states have a 70%–80% chance of prevailing.
