By SectorWire desk ·
New Jersey has petitioned the US Supreme Court to clarify whether sports event contracts fall under federal regulation or state gambling laws. The court has yet to decide whether to hear the case.
The case could determine whether operators offering sports event contracts must comply with state gambling licensing and tax requirements.
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Sports trading helped prediction market operators exceed their previous monthly volume record.
Sports and combo markets generated 86% of Sunday volume, highlighting their importance to prediction market operators.
The dispute concerns whether states can apply gambling rules to sports-event contracts offered by federally regulated exchanges.
The dispute could affect whether prediction market operators face state gambling laws alongside federal oversight.
The outcome could determine whether prediction market operators can continue serving the US market under federal or state rules.
Kalshi’s proposed rule would allow financial penalties, suspension or account deactivation for users harassing athletes or third parties over trading.