New Jersey has petitioned the U.S. Supreme Court to decide whether states can regulate sports betting offered by exchanges registered with the Commodity Futures Trading Commission (CFTC), escalating a jurisdictional dispute over Kalshi’s sports event contracts. The Third Circuit sided with Kalshi at the preliminary stage in April, while the Ninth Circuit ruled for Nevada on Aug. 28, finding that Kalshi’s sports contracts were not swaps and fell within state regulatory authority. Kalshi CEO Tarek Mansour said revised CFTC rules could emerge within weeks or months and clarify issues central to the litigation. Kalshi’s response to New Jersey’s Sept. 2 application is due within 30 days, followed by a 10-day reply period for New Jersey. Michigan has separately imposed a preliminary injunction and a $500,000 daily geolocation-related penalty, while the CFTC has proposed replacing a blanket ban on gaming-related event contracts with case-by-case public-interest reviews.