Pennsylvania Attorney General Dave Sunday has joined a bipartisan coalition asking the U.S. Supreme Court to review whether prediction-market operator Kalshi may offer sports-related contracts without complying with state gambling laws.
The coalition is supporting New Jersey’s petition for Supreme Court review. Pennsylvania’s Office of Attorney General said 39 state attorneys general joined the filing. They argue that sports-related prediction contracts should be treated as sports betting and remain subject to state licensing, oversight and consumer-protection requirements.
Kalshi operates a market where users buy and sell contracts based on the outcomes of events. According to the Attorney General’s Office, the company began offering sports-related contracts in 2025.
The filing follows conflicting federal appeals-court decisions. In April, the Third U.S. Circuit Court of Appeals, which has jurisdiction over Pennsylvania, ruled that the Commodity Futures Trading Commission has exclusive jurisdiction over Kalshi’s event contracts. That decision limited states’ ability to enforce their gambling laws against the company.
The Attorney General’s Office said the Sixth and Ninth Circuits reached a different conclusion in September, ruling that states may regulate prediction markets when the contracts function as gambling. The coalition says those differing decisions have created uncertainty for state regulators and wants the Supreme Court to resolve the conflict.
Pennsylvania previously joined Ohio and 36 other attorneys general in a friend-of-the-court brief before the Third Circuit and participated in similar efforts before the Sixth and Ninth Circuits. The latest announcement states the coalition’s legal position and does not announce criminal charges.
