New Jersey has asked the Supreme Court to rule on who has authority over sports betting tied to prediction markets, escalating a legal fight over state gambling laws and federally regulated event contracts. Attorney General Jennifer Davenport filed a 332-page petition seeking review of a Third Circuit Court of Appeals decision that favored Kalshi. The state argued that gambling has long been regulated through state law, including protections against pathological gambling, underage gambling, and insider trading in sporting events. New Jersey urged the court to find that Congress did not implicitly exempt the sports betting industry from state regulation. Kalshi opposed the filing, saying it operates as a national financial exchange and cannot be overseen separately by 50 different regulators.