A New Jersey courtroom was hit with a barrage of briefs earlier this week when litigants from across the regulated gaming world lined up to oppose Kalshi and other prediction sites that are operating in the American sports betting market. Over the course of two days, five amicus briefs (friends of the court) were filed in the US Court of Appeals for the Third Circuit by companies opposed to Kalshi’s business practices. It’s a flurry of legal activity that shows how seriously the regulated gaming industry is taking its unlicensed competition.
The groups filing briefs in the case include The American Gaming Association; a coalition of more than 60 Indian tribes; a coalition of lawyers representing 34 US States; The Casino Association of New Jersey; and group of anti-gambling organizations including Stop Predatory Gambling, Texans Against Gambling and the Association of American Physicians and Surgeons. The sheer breadth of the opposition to Kalshi and other prediction market operators speaks volumes about this issue.
Commenting in The Closing Line, gaming attorney Andrew Kim pointed out the importance of the briefs saying, “The amici are doing exactly what they’re supposed to: explaining the importance of this case.Unlike judges in the district courts, the Third Circuit has a more complete picture of the seismic regulatory upheaval Kalshi’s legal position would unleash.”
The original brief in the case was filed by a group of states who believe that sports betting of any kind should be regulated by the states, not the federal government. These new briefs support that argument, as well as the argument that prediction markets undermine licensed operators and should be regulated like regular casinos.