CFTC sues to block Utah from enforcing gambling laws against prediction markets
The agency says federal law preempts Utah’s efforts to police prediction-market contracts and seeks to block state investigations and enforcement.
- On Tuesday, Oct. 27, the Commodity Futures Trading Commission sued Utah to stop state authorities from enforcing local laws against federally registered exchanges, arguing the Commodity Exchange Act grants the Commission exclusive regulatory authority.
- Utah sued Kalshi and Susquehanna on Oct. 20, seeking between $30.6 million and $61.2 million in allegedly unlawful fees, following an August ruling where District Judge Robert Shelby granted summary judgment to the state.
- The federal complaint invokes the Constitution's Supremacy Clause, arguing that allowing states to regulate the same contracts would expose exchanges to "the prospect of 50 regulators across the country," and the Commission confirmed similar proceedings against nine other states.
- On Oct. 26, the NBA named Kalshi and Polymarket its preferred prediction-market exchanges, while Kalshi spokesperson Jacki McGavick disputed Utah's characterization, stating customers determine prices through the exchange rather than gambling.
- Legal uncertainty persists as the Tenth Circuit denied Kalshi's emergency injunction request on Sep. 8, and Utah's attorney general noted the underlying appeal remained pending when announcing the October state-court action.
20 Articles
20 Articles
Cointelegraph
The New York LedgerCFTC Files Lawsuit Against Utah Over Prediction Markets
The federal commodities regulator has responded to Utah officials’ lawsuit against Kalshi by filing its own, alleging that the officials were trying to usurp federal authority over prediction markets.
CFTC sues Utah as prediction-market fight reaches 10 states
The Commodity Futures Trading Commission and the U.S. government have sued Utah over its enforcement against prediction markets, bringing the agency’s state jurisdiction challenges to 10. The CFTC’s Oct. 27 announcement said the lawsuit seeks to stop Utah from using…
CFTC Sues Utah, Warns Kalshi Crackdown Threatens Federal Oversight
The federal government has hauled Utah into court over prediction markets, challenging a state gambling crackdown that targets Kalshi and potentially $61.2 million in trading fees. The showdown pits Washington’s derivatives regulator against one of America’s strictest gambling prohibitions. CFTC Challenges Utah’s Gambling Crackdown On Tuesday, the Commodity Futures Trading Commission (CFTC) and the United […]
CFTC Takes Utah to Court as Prediction Market Regulatory Showdown Escalates
TL;DR: The Commodity Futures Trading Commission (CFTC) filed a lawsuit against the state of Utah and its attorney general, Derek Brown. The legal action marks the tenth lawsuit brought by the federal regulator against U.S. states to curb local litigation against regulated platforms like Kalshi. Concurrently, media reports indicated that the agency maintains an active ...
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