Forty jurisdictions back states' power to regulate gambling in Kalshi case
Forty jurisdictions have joined an amicus brief supporting states' power to regulate gambling in a case involving event contracts on the Kalshi exchange. The brief was filed in Flaherty v. KalshiEX LLC, No. 26-299, at the U.S. Supreme Court on October 7, 2026. The filing argues for federal preemption limits in the context of state gambling regulation.
A Supreme Court ruling limiting federal preemption could let states impose stricter rules on CFTC-regulated prediction markets, fragmenting the national market for event contracts.
Forty jurisdictions join the NFL, Ohio, Tennessee, New York, Missouri, and Illinois in a widening state-led push to subject CFTC-registered prediction markets to local gambling laws, deepening the legal fracture that Kalshi and Polymarket are fighting on parallel fronts.