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DOJ, CFTC Sue 3 States for Blocking Sports Prediction Markets
The agency says states are trying to block federally registered event contracts, and more than 10 bills have been introduced to tighten 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.
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22 Articles
Federal regulator sues 3 states over prediction market restrictions
The Commodity Futures Trading Commission (CFTC) is suing Arizona, Connecticut and Illinois over the states’ efforts to place restrictions on prediction markets operating within their borders, underscoring the escalating fight between state and federal regulators over the platforms. In the trio of lawsuits filed Thursday, the CFTC asked the courts to determine that the agency’s...
·Washington, United States
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Trump Administration Sues Illinois, Arizona, Connecticut To Shield Kalshi, Polymarket From Gambling Laws
The DOJ and CFTC sued Illinois, Arizona and Connecticut to block state gambling laws from applying to Kalshi and Polymarket. The lawyer leading the federal case previously represented Kalshi.
·New York, United States
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Coverage Details
Total News Sources22
Leaning Left4Leaning Right1Center7Last UpdatedBias Distribution59% Center
Bias Distribution
- 59% of the sources are Center
59% Center
L 33%
C 59%
Factuality
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