The US Supreme Court has received 11 amicus briefs backing New Jersey in its dispute with Kalshi. Among the supporters of the petition are 39 states and Washington, D.C. The NFL filed its own brief. Former senator Christopher Dodd and former CFTC chair Gary Gensler also set out arguments. The question at issue is whether sports contracts are swaps under the CEA, and whether that law overrides state gambling regulation of such products. The Third Circuit sided with Kalshi. The Sixth and Ninth backed the states. The court has not yet acted.
Self-certification and the swaps question
The briefs challenge self-certification directly. Exchanges can start trading the next business day, while under the June draft the CFTC has 10 days after listing to open a review. Dodd argues that listing alone should not take a contract outside state law. CANJ says the CFTC does not enforce existing restrictions on gambling-related contracts. The NFL questions whether the agency has the resources. Gensler warns that under Kalshi's logic every retail bet placed outside exchanges since October 2012 would have been illegal. The CFTC has therefore issued an interim rule that keeps casino-style products outside the definition of a swap. A response is expected by 9 November.
The American Gaming Association (AGA) points to the age gap. Most states allow sports betting from 21, while Kalshi admits users from 18. In the first eight months of 2026, traders aged 18-20 traded $5.4 billion on Kalshi, of which about $3.9 billion went on sports and parlays. Kalshi cites deposit limits and warnings. Novig and Fanatics have set the bar at 21.
The Cabazon Band tribe gave a specific episode. Jonathan Rosser placed $25 on the Minnesota Vikings and Tampa Bay Buccaneers match on 22 September from an office on the reservation in California, with a payout of $45.66. The tribe calls this a breach of IGRA. The Ninth Circuit has already held such contracts to be class III games and ruled that transactions made from tribal territory take place on Indian lands. Kalshi geofenced those lands. A coalition of 145 tribes warns of a threat to the IGRA system. The NFL wants markets vulnerable to manipulation, bets on injuries and referee decisions banned, and complains there is no emergency stop procedure. Stop Predatory Gambling asks the court to revisit part of the 2018 Murphy v. NCAA ruling that struck down PASPA. So far no brief supports Kalshi.
