U.S. Regulator Sues Three States to Protect Prediction Markets
The Commodity Futures Trading Commission (CFTC) has filed civil lawsuits against Arizona, Illinois, and Connecticut, challenging their attempts to ban sports and election-related betting on prediction market platforms like Kalshi. The federal regulator asserts it holds exclusive jurisdiction over these contracts under federal law, arguing that state gambling laws cannot be applied to them. This legal action marks a significant escalation in the conflict between the Trump administration and various states regarding the regulation of prediction markets. These platforms have seen rapid growth following President Trump's re-election in 2024, with notable involvement from the Trump family, including an advisory role by one of his sons at Kalshi. The CFTC is seeking court orders to block the states from enforcing cease-and-desist orders issued to the platforms.
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U.S. Regulator Sues Three States to Protect Prediction Markets
The Commodity Futures Trading Commission (CFTC) has filed civil lawsuits against Arizona, Illinois, and Connecticut, challenging their attempts to ban sports and election-related betting on prediction market platforms like Kalshi. The federal regulator asserts it holds exclusive jurisdiction over these contracts under federal law, arguing that state gambling laws cannot be applied to them. This legal action marks a significant escalation in the conflict between the Trump administration and various states regarding the regulation of prediction markets. These platforms have seen rapid growth following President Trump's re-election in 2024, with notable involvement from the Trump family, including an advisory role by one of his sons at Kalshi. The CFTC is seeking court orders to block the states from enforcing cease-and-desist orders issued to the platforms.
WSJ.com: Markets