Two federal appellate courts in the United States have differing rulings on Kalshi's regulatory authority, and New Jersey is applying for a review by the Supreme Court

Two federal appellate courts in the United States have made opposing rulings on whether states can regulate the Kalshi sports contract, and New Jersey has applied for a review by the US Supreme Court. The core of the dispute is whether the relevant contracts belong to federally regulated financial swaps or should be subject to state gambling laws. About 70% of Kalshi's daily trading volume comes from sports events; If each state gains regulatory authority, Kalshi will face state taxes and other restrictions ranging from 10% to 51% of gambling revenue. (Source: The Wall Street Journal)