New Jersey Petitions Supreme Court in Kalshi Fight Over Sports Event Contracts
The state is asking whether Dodd-Frank preempts state gambling rules for contracts listed on CFTC-regulated venues.
Start hereKalshi is a federally regulated U.S. derivatives exchange where traders buy and sell yes-or-no event contracts that settle at $1 or $0.

Kalshi’s core cost is a per-contract fee that peaks at 1.75¢ at 50¢, plus separate deposit and withdrawal charges that depend on payment method.

Kalshi lists CFTC-regulated election event contracts that trade from $0 to $1 and settle at $1 or $0, so the price can be read as a probability only when the market is liquid and the rules are clear.
The state is asking whether Dodd-Frank preempts state gambling rules for contracts listed on CFTC-regulated venues.
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The order ties the payment to “mention markets,” a contract type now drawing sharper insider-info scrutiny.
The move escalates a state-by-state legal split as Kalshi calls court outcomes “close to 50-50.”
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The suit escalates a state-level dispute over sports-linked event contracts, with key filing details still unavailable in the packet.
The sit-down is planned ahead of the CFTC committee’s inaugural Thursday session on crypto market structure and clarity.
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The city also names Robinhood, Webull, and Coinbase as Kalshi partners in deceptive-marketing claims in Maryland.
The order leaves the state lawsuit in place and lets the CFTC renew its request before Judge Marrero on Aug. 7.
A separate SDNY Polymarket defendant is asking to dismiss CEA counts by arguing event contracts are not clearly “swaps.”
The filing details are not in the packet, leaving the alleged conduct and any non-monetary terms unresolved.
No pending DCM filing was visible in CFTC records as of the day the plan was announced at Rare Evo.
A July 27 injunction blocks Aug. 1 enforcement while the court weighs CEA preemption for some event contracts.
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Testimony flagged CFTC staffing limits as state court fights intensify around Kalshi and Polymarket.
The order cites Washington gambling laws, leaving the scope and user impact unclear from the available packet.