US Edition
DOJ, CFTC Sue 3 States for Blocking Sports Prediction Markets
The agency says 3 states are trying to block federally registered event contracts, and it argues Congress gave it exclusive oversight.
- On Wednesday, the Commodity Futures Trading Commission announced lawsuits against Arizona, Connecticut, and Illinois, challenging state attempts to regulate prediction markets the commission claims fall under its exclusive authority.
- CFTC Chairman Michael S. Selig cited the Commodity Exchange Act, stating Congress specifically rejected a 'fragmented patchwork of state regulations' to ensure consumer protection and prevent fraud and market manipulation.
- Mounting Capitol Hill scrutiny follows the surge in popularity of prediction platforms like Kalshi and Polymarket, intensifying debate over whether federal agencies or states should regulate these markets.
- Congressional Democrats recently introduced legislation banning prediction bets on elections, war, and sports; Rep. Seth Moulton implemented a staff policy prohibiting use of these platforms, believed to be Congress's first.
- Sabrina Perel, the NFL's chief compliance officer, asked prediction operators to block 'objectionable' contracts, noting the commission believes sports-related betting requires unique regulation distinct from other financial markets.
73 Articles
73 Articles
US sues three states over attempts to regulate prediction markets
The Commodity Futures Trading Commission has filed suit against the states of Arizona, Connecticut, and Illinois, challenging their efforts to ban prediction market betting on platforms such as Kalshi and Polymarket. Prediction markets allow users to wager on real-world outcomes, from the likelihood of rain in Nevada to the beginning of a war, and have grown rapidly in popularity since 2024. While the platforms host a range of event-based contr…
3 States in Feds' Crosshairs for Regulating Prediction Markets
The federal government on Thursday sued Connecticut, Arizona, and Illinois, challenging their efforts to regulate prediction market operators such as Kalshi and Polymarket. All three states have sent cease and desist orders to such companies accusing them of engaging in illegal online gambling under state law, reports the AP . Arizona...
Feds sue three states over prediction market crackdowns
The U.S. Commodity Futures Trading Commission on Thursday sued three states — Arizona, Connecticut and Illinois — for what what it calls "unconstitutional and invalid" applications of state anti-gambling laws to prediction markets. Why it matters: These cases could determine who really regulates…
The Epoch Times
The Constitution StudyFeds Sue Arizona, Connecticut, and Illinois Over Prediction Markets Jurisdiction Dispute
The federal government on Thursday sued Arizona, Connecticut, and Illinois to stop their regulation of prediction markets, arguing that it holds jurisdiction over event contracts traded on federally registered platforms. The Commodity Futures Trading Commission (CFTC) said the three states have attempted to ban, regulate, or restrain the activities of designated contract markets that offer trading in lawful event contracts—a legally binding “yes…
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