Kalshi’s ongoing legal dispute with the New Jersey Division of Gaming Enforcement (DGE) has taken a new turn after a series of industry stakeholders issued their support to the state regulator en masse.
The case, which stems from Kalshi’s rollout of its sports event contracts earlier this year, is currently being played out in front of the US Court of Appeals for the Third Circuit.
Since the start of this week, multiple industry figures and groups have filed amicus briefs backing the DGE, including the American Gaming Association (AGA), 34 states as well as Washington DC and the Northern Mariana Islands.
Those entities were joined by groups representing hundreds of tribes, such as the Indian Gaming Association.
The Casino Association of New Jersey, which represents nine Atlantic City casinos, and the Stop Predatory Gambling non-profit have also both weighed in against Kalshi.
The dispute began when Kalshi filed a lawsuit against the DGE in response to a cease-and-desist order sent by the regulator, with the prediction markets platform looking to ensure its offering could not be thwarted by the New Jersey authority.
While Kalshi has also filed lawsuits against regulators in Nevada and Maryland, this is the first of the three to reach the appeals court.
The wave of support from the 34 states comes from both sides of the political aisle, with both Democrat and Republican-leaning states backing industry regulators, including those that boast legalised sports betting and those that don’t.
As per the Event Horizon newsletter , many of the amicus briefs address concerns that Kalshi’s sports event contracts are effectively unauthorised sports wagering, given users aged 18 and over in all 50 US states are able to trade contracts for money based on their prediction of a fixture’s outcome.
Kalshi, amid scrutiny from several states, has continues to argue that its product is regulated at federal level by the Commodity Futures Trading Commission (CFTC) and therefore, state-level authorities do not possess the power to order the firm to stop its sports event contracts being traded.
That is a stance that concerns the AGA, as shown in the opening statement of the trade body’s brief, that read: “AGA submits this brief to address the disruptive effects that Kalshi’s unlicensed sports wagers will have on the carefully crafted regulatory framework adopted by New Jersey and other states.
“Given the particular expertise and commitment of resources necessary for effective oversight of sports-betting markets, AGA is concerned that the CFTC is not equipped to carry out the regulatory role traditionally played by state governments.”
The post Industry stakeholders pledge support for New Jersey in Kalshi court battle first appeared on EGR Intel.
American Gaming Association, 34 state attorney generals and several tribal gaming groups file amicus briefs looking to thwart rollout of sports event contracts
The post Industry stakeholders pledge support for New Jersey in Kalshi court battle first appeared on EGR Intel.