A number of are rallying behind New Jersey’s appeal to the Supreme Court, urging the justices to affirm state authority over prediction markets. The states warn that lower court rulings have resulted in confusion and division.

Recently, New Jersey asked the Supreme Court to take up this pressing issue, which has seen significant debate in lower courts.

While the justices typically decline most cases, they are expected to review New Jersey’s request in an upcoming closed-door meeting. High-profile prediction market platforms such as Kalshi and Polymarket, which have backing from the Trump administration, argue for federal oversight rather than state control. In their amicus brief filed in support of New Jersey, the bipartisan coalition declared, “The prediction markets are wrong.” They emphasized, “No attempt to rebrand or reframe will diminish the states’ fundamental sovereign powers. Our constitutional design is resilient, safeguarding state abilities to protect their citizens.”

This coalition was spearheaded by Ohio Attorney General Andy Wilson (R), with support from the District of Columbia and 38 other states. Although states have broad powers to regulate and tax gambling within their jurisdictions, prediction markets contend that their offerings are fundamentally different. Kalshi posits that their products qualify as “swaps” under federal law, thus placing them under the jurisdiction of the Commodity Futures Trading Commission (CFTC).

However, the states assert that this argument would undermine existing state gambling regulations, stripping away essential safeguards and jeopardizing citizen safety. The coalition stated, “The united voice of nearly all states should carry significant weight in this matter.”

This legal battle reached the Supreme Court following a lawsuit from Kalshi against New Jersey last year, aiming to block the state from enforcing its gambling laws against the company. Kalshi previously secured a victory in the 3rd U.S. Circuit Court of Appeals, highlighting a developing split among appellate courts nationwide.

As New Jersey takes this pivotal issue to the Supreme Court, it has also gained support from the National Football League (NFL). The NFL raised concerns regarding the CFTC’s capability to ensure that prediction markets “do not jeopardize game integrity.” The NFL contrasted this with state gaming authorities that have worked collaboratively with the league for years to establish robust safeguards that uphold the integrity of games, as noted in their brief submitted on Thursday.