Prediction market Kalshi won’t let you bet on whether New Jersey’s case against it will reach the US Supreme Court, or what verdict the Supreme Court would issue if it ever did.
That’s according to Barron’s reporter Nick Devor, who claims that Kalshi’s policy means it “won’t have a way to hedge against the biggest risk to the company’s business.”
A Kalshi spokesperson told Devor that the firm could list a market on the Supreme Court’s actions if it wanted to, “but is not doing so on principle.”
Devor also notes that Kalshi doesn’t want to introduce a market which it could influence, as that would break its company policy.
Appeals courts are split over Kalshi
Last Friday, an appeals court ruled in Nevada’s favor that sports contracts aren’t swaps, putting them under the category of bets and within the scope of state regulation.
However, in April an appeals court sided with Kalshi after it sued New Jersey. The ruling stated federal regulators like the CFTC should have the final say over prediction markets and sports-related contracts.
CFTC orders Kalshi to continue operations amid New York lawsuit
Because of this split across courts, New Jersey filed a petition with the Supreme Court this week asking it to decide on “whether prediction markets can offer sports wagers without following state sports-gambling laws.”
NFL says prediction markets threaten game integrity
The state of Michigan this week also banned Kalshi from offering event contracts to its citizens. It threatened a $500,000-a-day fine if it breached this new preliminary injunction.
The NFL also wrote to prediction markets yesterday, reiterating that it doesn’t want sports contracts on offer that are easily manipulated or “inherently objectionable.”
It said, “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.”
