The Courts Are Divided - 9/8/26

States can regulate sports prediction markets as gambling, a federal court just ruled. But the decision actually deepens a divide across different federal courts, increasing the chances that it will make its way up to the Supreme Court. At issue are prediction markets like CalSheet, which allow users to wager on the outcomes of sporting events. The company argues that these are financial products that should be regulated like commodities by the Commodity Feature Trading Commission, which would shield it from state laws against gambling.

The Ninth Circuit disagreed. And unanimously decided that these prediction markets were less like commodity swaps and more like sports betting. But across the country, the Third Circuit ruled in favor of Kalshi back in April. So, the Attorney General of New Jersey is calling on the Supreme Court to step in and make a final decision. There's no doubt big bucks are at stake. According to the New Jersey Attorney General, 95% of Kalshi's revenue in 2025 came from prediction bets on sports games.

Meanwhile, over at The Loop. Federal immigration law enforcement agents are cracking down on suspected non-citizen voter fraud in nine key states in a move that experts say is long overdue. Today is the Feast of the Nativity of the Blessed Virgin Mary. The Church has celebrated this feast since at least the 5th century, and it's only appropriate for Mary's Nativity to fall on September 8th, as that is nine months after we celebrate her Immaculate Conception on December 8th. I'm Josh Mercer, editor of The Loop, taking you behind the headlines.

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