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Ars Technica

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

New Jersey filed a lawsuit asking the Supreme Court to decide whether sports betting on prediction markets like Kalshi is gambling or a swap. The state argues that Kalshi offers legal sports betting nationwide while ignoring state gambling laws. A 2024 3rd Circuit ruling classified sports-related contracts as swaps, giving the CFTC exclusive jurisdiction.