Share 
New Jersey state Sen. Shirley K. Turner (D) introduced a bill last week that would prohibit certain prediction markets from operating in New Jersey while also regulating athletic events as sports wagering.
Prediction markets have been a controversial topic throughout the country. Many states, including New Jersey, are arguing that prediction operators are sidestepping gambling laws that regulated New Jersey sportsbooks must follow.
The state is currently in a legal battle with a prominent operator, Kalshi, to either ban or regulate prediction markets.
Treating sports predications as wagering
Turner introduced S3692 on last week, however, there was no text to the bill. Now that there is, Turner wants prediction markets offering sports contracts to be treating as wagering. The bill says:
“The bill also regulates athletic event markets in the same manner as sports wagering. This includes requiring any operator of an athletic event market to either obtain a sports wagering license, or become licensed as a casino service industry enterprise and partner with a sports wagering licensee.
“Athletic event markets will also require a minimum age of 21 years to participate, establish self-exclusion and responsible gaming programs, and pay taxes at an equivalent rate to online sports pools.”
Turner does specify that prediction operators cannot offer death markets, catastrophic event markets, and political markets. She is instructing the New Jersey Division of Gaming Enforcement to regulate prediction markets.
There’s a strong likelihood that sports will be included in the bill.
Ongoing litigation
Kalshi started offering sports predictions around the Super Bowl in 2025. It now has a full menu of markets for all sports, similar to a sports wagering platform. However, the offers are considered contracts.
The New Jersey Division of Gaming Enforcement (DGE) had issued a cease-and-desist-letter last March, to which a New Jersey judge awarded Kalshi a preliminary injunction to continue operating. The DGE filed an appeal in June.
Kalshi is federally regulated under the Commodity Futures Trading Commission, which is its argument in offering sports contracts. The DGE argues that prediction markets to do not offer the same levels of consumer protections.
New Jersey Attorney General Jennifer Davenport is urging the courts to look at a Massachusetts Superior Court ruling, which stopped Kalshi from offering sports markets in the state in January.
Turner introduces a second bill
Turner also filed S3656 on Thursday. The second one also does not have text, only a description:
“Prohibits institution of higher education from entering into sports wagering partnership.”
New Jersey has submitted multiple bills involving sports wagering and education that have stalled in recent years. However, before Gov. Phil Murphy left office, he signed Assembly Bill A1715/S3184 into law, which expands gambling addiction education at New Jersey public colleges.
