Former New Jersey Governor Chris Christie predicts legal battle over prediction markets will reach U.S. Supreme Court, as states challenge federal authority over sports-related event contracts.
Christie, now a strategic advisor to the American Gaming Association (AGA), believes that the policy allowing prediction markets to offer sports contracts under federal oversight is hurting states that regulate sports betting.
“I think it’s going to go to the Supreme Court,” Christie told CNBC, suggesting that Congress could resolve the dispute first through legislation such as the CLARITY Act.
The controversy revolves around whether sports event contracts offered by federally regulated prediction-market exchanges are derivatives subject to the exclusive jurisdiction of the Commodity Futures Trading Commission (CFTC), or sports wagers that must comply with state gambling laws.
“What I know is the policy is wrong. It’s injurious to the states,” Christie said. “You’ve got 1.3 billion in tax revenue to states that have already been siphoned off by the predictive market companies, and they refuse to allow themselves to be regulated.”
Christie also criticized the accessibility of sports prediction contracts to younger customers, stating that some individuals who are not legally allowed to bet at traditional sportsbooks can participate in prediction markets.
The CFTC argues that federal law gives it exclusive authority over U.S. commodity derivatives markets, which includes event contracts offered by prediction markets.
CFTC Chairman Michael Selig has accused states of disregarding federal law by attempting to apply their gambling regulations to federally registered markets.
“Chris Christie is leading a campaign to ban American Prediction Markets in states across the country. We’re simply not going to allow that to happen,” Selig stated in response to Christie.
Christie has also escalated his criticism of Selig, accusing the CFTC chairman of misleading President Donald Trump about the agency’s legal battles with states.
“He (Selig) stood in front of the president the other day and lied,” Christie said. “He lied to his boss, and this is a guy who’s leading a losing effort for the president.”
Christie pointed to opposition from 44 state attorneys general, from both parties, as evidence of broad resistance to the federal approach.
The two sides also dispute the industry’s record in court. Christie claimed states have won 85% of cases involving prediction markets, while Robert DeNault, Kalshi’s Head of Enforcement, said the legal split is closer to 50-50.
“The legal split is much closer to 50-50,” DeNault said, while also dismissing Christie’s critique of enforcement. “Good policy and legal debates turn on facts, not fiction. But Governor Christie’s claims aren’t based on facts.”
Kalshi has reported launching over 150 insider trading investigations in the first quarter of 2026, blocking more than 100 attempted insider trades, and referring at least 20 cases to law enforcement.
President Donald Trump, meanwhile, has endorsed the CFTC’s position, asserting that it is “critically important” for the agency to maintain exclusive authority over prediction markets.
The clash leaves the courts to determine whether sports event contracts are federally regulated financial derivatives or gambling products subject to state licensing, consumer protection, and age restrictions. Christie believes that the Supreme Court will ultimately have to settle the issue if Congress does not intervene.