Inside the latest prediction market developments

In the New Jersey filing, Davenport argued that a conflicting ruling in August by the U.S. Court of Appeals for the Ninth Circuit in a Nevada case created a clear circuit split.

Official response and confirmed impact

The Ninth Circuit ruled that Nevada retains the authority to regulate prediction markets and that Kalshi’s sports-event contracts function like traditional sports betting rather than federally regulated swaps.

New Jersey contends that prediction market companies like Kalshi are operating without a state gaming license and protections for minors and problem gamblers.

DraftKings CEO Jason Robins used the Wells Fargo Ninth Annual Consumer Conference to present a case for the company’s growth, saying prediction markets are expanding rapidly, while its core sports betting business remains strong.

Robins also pointed to a recovery in igaming and said the company is positioned to benefit whether regulators or the courts allow prediction markets to keep going or force changes down the road.

Incident under investigation

The Supreme Court is expected to decide later this year whether it will take up the case.

Kalshi argues that it operates a nationwide financial exchange governed solely by federal law.