Supreme Court urged to rule on sports prediction markets

Key points

• Former Senator Chris Dodd and former CFTC chair Gary Gensler filed briefs arguing Dodd-Frank did not let the CFTC preempt state gambling laws.
• The NFL, 39 states plus the District of Columbia and 145 tribal nations also urged the court to take the case.
• The CFTC issued an interim final rule and a separate proposal on Friday, and Kalshi's response deadline is now 9 Nov 2026.

Several parties have asked the US Supreme Court to take up the question of whether sports-based prediction market contracts are swaps, CoinDesk reports. Amicus briefs filed last week urged the court to side with the states and treat at least sports-related prediction markets as gambling products regulated at state level rather than by the CFTC.

Dodd, whose name is on the 2010 Dodd-Frank Act at the centre of the argument, said the law was not meant to give the CFTC authority to usurp state governments' ability to regulate gambling. Gensler made a similar argument.

Dodd's filing said parlays chaining multiple wagers do not facilitate hedging or price discovery, and that the CFTC's grant of exclusive jurisdiction is not an express preemption provision. The NFL criticised what it called the CFTC's laissez-faire approach.

Kalshi was granted an extension to respond to the Supreme Court, with a deadline of 9 Nov 2026.

What to watch: Kalshi's extended deadline to file its response to the Supreme Court is 9 Nov 2026.

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