NJ urges SCOTUS to rule that Kalshi sports bets are gambling, not "swaps"

The New Jersey Attorney General's office filed a brief with the Supreme Court arguing that Kalshi's binary options contracts on sports outcomes should be classified as gambling rather than financial derivatives under federal law. New Jersey, along with other states, has opposed Kalshi's trading platform, which allows users to buy and sell contracts tied to specific sports events. The case centers on whether these contracts fall under the Commodity Exchange Act's definition of swaps or are subject to state gambling regulations. A federal appeals court previously ruled in Kalshi's favor, creating disagreement among lower courts on how to classify the contracts.

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