Kalshi bars betting on its own Supreme Court case

Kalshi, the prediction market platform, is not offering contracts on whether its dispute with New Jersey goes to the US Supreme Court, nor on any potential ruling.

According to Barron’s journalist Nick Devor, Kalshi’s stance means the company “won’t have a way to hedge against the biggest risk to the company’s business.”

A representative for Kalshi informed Devor that the firm could list a market on Supreme Court actions if it chose, “but is not doing so on principle.”

Devor further noted that Kalshi avoids introducing a market it could potentially influence, as that would violate its internal policy.

Appeals courts divided on Kalshi's status

On Friday, an appeals court sided with Nevada, determining that sports contracts are not swaps, thus classifying them as bets and subject to state oversight.

In April, however, a different appeals court ruled in Kalshi's favor after it sued New Jersey. That decision said federal bodies such as the CFTC should have ultimate authority over prediction markets and sports contracts.

Owing to the conflicting rulings, New Jersey petitioned the Supreme Court this week, requesting it to rule on “whether prediction markets can offer sports wagers without following state sports-gambling laws.”

NFL argues prediction markets harm game integrity

This week, Michigan also prohibited Kalshi from offering event contracts to its residents, threatening a daily fine of $500,000 if the firm violated the preliminary injunction.

The NFL sent a letter to prediction markets on Wednesday, restating its opposition to sports contracts that are susceptible to manipulation or “inherently objectionable.”

The league stated, “It is deeply concerning that bets within the objectionable categories that we identified months ago have been and continue to be listed as contracts on exchanges.”