A group of US state lawmakers has filed an amicus brief with the US Supreme Court, urging justices to review a dispute between prediction markets platform Kalshi and gaming authorities. On Tuesday, the National Council of Legislators from Gaming States (NCLGS) filed in support of New Jersey’s Attorney General and gaming authorities’ petition for a writ of certiorari, which was submitted on Sept. 2. The petition asks the nation’s highest court to consider New Jersey’s case against Kalshi and could help determine whether state authorities or federal agencies have jurisdiction over prediction market companies. According to Cointelegraph, the filing argues that a ruling in Kalshi’s favor would leave states powerless to regulate sports betting on prediction markets and create substantial harm and confusion. The group said gaming-related matters should remain under individual US state authority, while not addressing the opposing view that event contracts traded on federally regulated markets fall under the CFTC’s exclusive jurisdiction.

The lawmakers said that if Kalshi’s self-described sports betting activities are found to be beyond state regulation, casinos, pari-mutuel operators, and other heavily regulated entities may seek the same treatment by changing their business and products. They added that entire state regulatory regimes surrounding this vice activity would need to be reconsidered if preemption is found in the area. The Supreme Court petition, filed by New Jersey authorities as part of an appeal after a decision from the US Court of Appeals for the Third Circuit, has not received an official response from Kalshi. The company has until Nov. 9 to file a brief stating its position in the case. A spokesperson told Cointelegraph after the initial filing that Kalshi could not be regulated by 50 different regulators.