{"id":1862526,"date":"2026-04-02T19:01:52","date_gmt":"2026-04-02T16:01:52","guid":{"rendered":"https:\/\/analyse.optim.biz\/?p=1862526"},"modified":"2026-04-02T19:01:52","modified_gmt":"2026-04-02T16:01:52","slug":"cftc-sues-three-states-for-trying-to-regulate-prediction-markets","status":"publish","type":"post","link":"https:\/\/analyse.optim.biz\/?p=1862526","title":{"rendered":"CFTC sues three states for trying to regulate prediction markets"},"content":{"rendered":"<p>[analyse_image type=&#8221;featured&#8221; src=&#8221;https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/44n_kMhMkWa29hiDyXdzlg&#8211;\/YXBwaWQ9aGlnaGxhbmRlcjt3PTEyMDA7aD04MDA-\/https:\/\/d29szjachogqwa.cloudfront.net\/images\/2026-04\/b66237e6-8868-4776-a1ac-1cd991524090&#8243;]<\/p>\n<article id=\"article-c287c520-8b25-4963-b6bc-7fe48910d027\">\n<div>\n<div class=\"mx-auto md:max-w-[1220px] md:px-10\">\n<nav class=\"prestige-breadcrumb relative mx-4 md:mx-0\" aria-label=\"breadcrumbs\">\n<ol class=\"no-scrollbar overflow-scroll whitespace-nowrap text-battleship\">\n<li class=\"inline\">\n<li class=\"inline-block cursor-default last:pr-10 md:last:pr-20 font-bold\">Big tech<\/li>\n<\/ol>\n<\/nav>\n<header class=\"mb-4 px-4 md:mb-6 md:px-0\">\n<h1 class=\"layout-h1 my-2 font-bold leading-tight\">CFTC sues three states for trying to regulate prediction markets<\/h1>\n<h2 class=\"my-2 text-[18px] font-light leading-5 md:max-w-[660px] md:text-[20px]\/[28px]\">The federal government wants sole authority over prediction markets.<\/h2>\n<div class=\"flex-col items-start lg:flex lg:flex-row lg:items-center lg:justify-between mt-6\">\n<div class=\"relative md:mr-[10px]\">\n<div class=\"flex items-center\">\n<div class=\"flex mr-2\">\n<div class=\"shrink-0 cursor-pointer inline-block size-[42px] lg:size-[48px]\"><img decoding=\"async\" alt role=\"img\" loading=\"lazy\" class=\"size-full rounded-full object-cover object-center shadow-[0_0_0_2px_#ffffff]\" src=\"https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/z0DGTUGhtSngJHwR4_52VQ--\/YXBwaWQ9aGlnaGxhbmRlcjt3PTgwO2g9ODA-\/https:\/\/s.yimg.com\/os\/creatr-uploaded-images\/2024-12\/104d0e40-b283-11ef-80fd-c7df9234dfe5\"><\/div>\n<\/div>\n<div class=\"inline-block\">\n<div class=\"w-max text-sm\/5 font-semibold flex items-center\">\n<div class=\"flex flex-col\">\n<div class=\"flex w-max items-center\">Ian Carlos Campbell<\/div>\n<p><span class=\"font-normal sm:before:inline-block\">Contributing Reporter<\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"lg:hidden\">\n<div class=\"text-xs text-dolphin dark:text-shark md:text-sm\/5 pt-4\">\n<div class=\"inline-block\"><time datetime=\"2026-04-02T19:01:52.000Z\">Thu, April 2, 2026 at 7:01 PM UTC<\/time><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"ml-0 mt-4 flex items-center lg:ml-3 lg:mt-0\">\n<div class=\"ml-0 mr-2\">\n<div class=\"relative flex\">Add Engadget on Google<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"hidden lg:block\">\n<div class=\"text-xs text-dolphin dark:text-shark md:text-sm\/5 pt-4\">\n<div class=\"inline-block\"><time datetime=\"2026-04-02T19:01:52.000Z\">Thu, April 2, 2026 at 7:01 PM UTC<\/time><\/div>\n<\/div>\n<\/div>\n<\/header>\n<\/div>\n<div class=\"grid grid-cols-1 gap-x-8 lg:gap-x-0 mx-auto md:px-10 md:max-w-[1220px] md:grid-cols-[[main-start]_1fr_[main-end_right-start]_min-content_[right-end]] lg:!gap-x-8\">\n<div class=\"md:col-main\" data-i13n-boundary=\"true\">\n<div>\n<div>\n<div>\n<div class=\"grid grid-cols-[[fullbleed-start_body-start]_minmax(auto,750px)_[body-end_fullbleed-end]]\">\n<figure class=\"relative col-body mb-4\">\n<div class=\"relative overflow-hidden fig-image-round left-1\/2 w-screen -translate-x-1\/2 md:left-0 md:w-auto md:translate-x-0\"><img decoding=\"async\" alt class=\"object-cover object-center\" src=\"https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/5_XfEJC5olti_SMWX4Wqxg--\/YXBwaWQ9aGlnaGxhbmRlcjt3PTEyNDI7aD04Mjg-\/https:\/\/s.yimg.com\/uu\/api\/res\/1.2\/mYLTNLc448kYLdeNogMVoA--~B\/aD0zNzE1O3c9NTU3MjthcHBpZD15dGFjaHlvbg--\/https:\/\/d29szjachogqwa.cloudfront.net\/images\/2026-04\/b66237e6-8868-4776-a1ac-1cd991524090\"><\/div><figcaption class=\"relative text-[0.875rem]\/[1.25rem] figure-caption mt-1 line-clamp-2 mt-2.5 md:mt-2 pr-2.5\">\n<div><span>Bill Clark via Getty Images<\/span><\/div>\n<\/figcaption><\/figure>\n<\/div>\n<\/div>\n<div class=\"grid grid-cols-article-mobile md:grid-cols-article lg:max-w-[750px] drop-cap\" data-article-body=\"true\">\n<p class=\"col-body mb-4 leading-7 text-[18px] md:leading-8 break-words min-w-0 charcoal-color\">The US Commodity Futures Trading Commission is suing Illinois, Arizona and Connecticut for attempting to outlaw or regulate prediction markets like Kalshi and Polymarket. The CFTC believes it has sole jurisdiction to regulate these platforms, and that states attempting to classify them as illegal gambling are overstepping their authority.<\/p>\n<p class=\"col-body mb-4 leading-7 text-[18px] md:leading-8 break-words min-w-0 charcoal-color\">CFTC defines prediction markets as \u201cdesignated contract markets\u201d where futures contracts are traded, essentially letting people bet on the outcome of events (for example, who will be the Democratic nominee for president in 2028). And because futures contracts are financial instruments distinct from traditional bets, they arguably fall under the supervision of the CFTC rather than the sports gambling authorities of individual states.<\/p>\n<p class=\"col-body mb-4 leading-7 text-[18px] md:leading-8 break-words min-w-0 charcoal-color\">Multiple states, including the three the CFTC is suing, have challenged that interpretation of what prediction markets are and how they operate. Nevada sued Kalshi in February for operating a sports gambling market without proper licenses, a lawsuit made possible because a federal appeals court declined to prevent Nevada from pursuing its case. Arizona&#8217;s attorney general filed a lawsuit against Kalshi in March along similar illegal sports gambling lines, and because the platform let people bet on Arizona elections, which violates state law. Both Illinois and Connecticut have also sent Kalshi and other prediction markets cease-and-desist letters, ordering them to stop advertising and offering their services in their respective states.<\/p>\n<div class=\"col-fullbleed mb-4 bg-marshmallow pb-5 dark:bg-ramones md:invisible md:mb-0 md:h-0 md:overflow-hidden md:pb-0\">\n<div class=\"py-2 text-center text-xs uppercase\">Advertisement<\/div>\n<div class=\"flex w-full flex-nowrap justify-center\">\n<div class=\"flex\" id=\"_R_cd97b4ilfeiv5tilbH1_\">\n<div class=\"flex size-full items-center justify-center bg-marshmallow text-center leading-3\">Advertisement<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"col-body mb-4 hidden pb-5 dark:bg-ramones md:block\">\n<div class=\"flex w-full flex-nowrap justify-center\">\n<div class=\"flex\" id=\"_R_kd97b4ilfeiv5tilbH1_\">\n<div class=\"flex size-full items-center justify-center bg-marshmallow text-center leading-3\">Advertisement<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p class=\"col-body mb-4 leading-7 text-[18px] md:leading-8 break-words min-w-0 charcoal-color\">&#8220;The CFTC will continue to safeguard its exclusive regulatory authority over these markets and defend market participants against overzealous state regulators,&#8221; CFTC Chairman Michael S. Selig said in a statement. &#8220;This is not the first time states have tried to impose inconsistent and contrary obligations on market participants, but Congress specifically rejected such a fragmented patchwork of state regulations because it resulted in poorer consumer protection and increased risk of fraud and manipulation.&#8221;<\/p>\n<p class=\"col-body mb-4 leading-7 text-[18px] md:leading-8 break-words min-w-0 charcoal-color\">Attempts to regulate, or in this case, stave off regulation of predication markets are complicated by the fact that President Donald Trump&#8217;s family has ties to the industry. Donald Trump Jr. is a paid advisor for Kalshi and investor in Polymarket. Major transactions made before recent US military actions in Iran have also suggested that people close to the government might be trading on prediction markets with insider knowledge. Some prediction markets have implemented new rules to prevent insider trading, but given the circumstances, it makes sense that states wouldn&#8217;t be satisfied with companies policing themselves.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<aside class=\"hidden flex-none md:block col-right\">\n<div class=\"flex size-full flex-col flex-nowrap\">\n<div class=\"flex-auto\">\n<div class=\"sticky flex flex-none\">\n<div class=\"flex\" id=\"_R_1pp7b4ilfeiv5tilbH1_\">\n<div class=\"flex size-full items-center justify-center bg-marshmallow text-center leading-3\">Advertisement<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/aside>\n<div class=\"md:col-main grid grid-cols-article-mobile md:grid-cols-article lg:max-w-[750px]\">\n<div class=\"no-scrollbar col-body mx-4 mb-8 mt-2.5 overflow-x-scroll whitespace-nowrap md:mx-0 md:max-w-[750px] md:overflow-x-visible\">\n<div class=\"mx-auto max-w-screen-sm\">\n<ul class=\"inline-flex text-xs md:text-sm\">\n<li class=\"mr-6\">About our ads<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n<div class=\"grid grid-cols-article-mobile md:grid-cols-article lg:max-w-[750px] drop-cap\" data-article-body=\"true\">\n<p class=\"col-body mb-4 leading-7 text-[18px] md:leading-8 break-words min-w-0 charcoal-color\">The US Commodity Futures Trading Commission is suing Illinois, Arizona and Connecticut for attempting to outlaw or regulate prediction markets like Kalshi and Polymarket. The CFTC believes it has sole jurisdiction to regulate these platforms, and that states attempting to classify them as illegal gambling are overstepping their authority.<\/p>\n<p class=\"col-body mb-4 leading-7 text-[18px] md:leading-8 break-words min-w-0 charcoal-color\">CFTC defines prediction markets as \u201cdesignated contract markets\u201d where futures contracts are traded, essentially letting people bet on the outcome of events (for example, who will be the Democratic nominee for president in 2028). And because futures contracts are financial instruments distinct from traditional bets, they arguably fall under the supervision of the CFTC rather than the sports gambling authorities of individual states.<\/p>\n<p class=\"col-body mb-4 leading-7 text-[18px] md:leading-8 break-words min-w-0 charcoal-color\">Multiple states, including the three the CFTC is suing, have challenged that interpretation of what prediction markets are and how they operate. Nevada sued Kalshi in February for operating a sports gambling market without proper licenses, a lawsuit made possible because a federal appeals court declined to prevent Nevada from pursuing its case. Arizona&#8217;s attorney general filed a lawsuit against Kalshi in March along similar illegal sports gambling lines, and because the platform let people bet on Arizona elections, which violates state law. Both Illinois and Connecticut have also sent Kalshi and other prediction markets cease-and-desist letters, ordering them to stop advertising and offering their services in their respective states.<\/p>\n<div class=\"col-fullbleed mb-4 bg-marshmallow pb-5 dark:bg-ramones md:invisible md:mb-0 md:h-0 md:overflow-hidden md:pb-0\">\n<div class=\"py-2 text-center text-xs uppercase\">Advertisement<\/div>\n<div class=\"flex w-full flex-nowrap justify-center\">\n<div class=\"flex\" id=\"_R_cd97b4ilfeiv5tilbH1_\">\n<div class=\"flex size-full items-center justify-center bg-marshmallow text-center leading-3\">Advertisement<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"col-body mb-4 hidden pb-5 dark:bg-ramones md:block\">\n<div class=\"flex w-full flex-nowrap justify-center\">\n<div class=\"flex\" id=\"_R_kd97b4ilfeiv5tilbH1_\">\n<div class=\"flex size-full items-center justify-center bg-marshmallow text-center leading-3\">Advertisement<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p class=\"col-body mb-4 leading-7 text-[18px] md:leading-8 break-words min-w-0 charcoal-color\">&#8220;The CFTC will continue to safeguard its exclusive regulatory authority over these markets and defend market participants against overzealous state regulators,&#8221; CFTC Chairman Michael S. Selig said in a statement. &#8220;This is not the first time states have tried to impose inconsistent and contrary obligations on market participants, but Congress specifically rejected such a fragmented patchwork of state regulations because it resulted in poorer consumer protection and increased risk of fraud and manipulation.&#8221;<\/p>\n<p class=\"col-body mb-4 leading-7 text-[18px] md:leading-8 break-words min-w-0 charcoal-color\">Attempts to regulate, or in this case, stave off regulation of predication markets are complicated by the fact that President Donald Trump&#8217;s family has ties to the industry. Donald Trump Jr. is a paid advisor for Kalshi and investor in Polymarket. Major transactions made before recent US military actions in Iran have also suggested that people close to the government might be trading on prediction markets with insider knowledge. Some prediction markets have implemented new rules to prevent insider trading, but given the circumstances, it makes sense that states wouldn&#8217;t be satisfied with companies policing themselves.<\/p>\n<\/div>\n<p>[analyse_source url=&#8221;https:\/\/www.engadget.com\/big-tech\/cftc-sues-three-states-for-trying-to-regulate-prediction-markets-190152226.html&#8221;]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[analyse_image type=&#8221;featured&#8221; src=&#8221;https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/44n_kMhMkWa29hiDyXdzlg&#8211;\/YXBwaWQ9aGlnaGxhbmRlcjt3PTEyMDA7aD04MDA-\/https:\/\/d29szjachogqwa.cloudfront.net\/images\/2026-04\/b66237e6-8868-4776-a1ac-1cd991524090&#8243;] Big tech CFTC sues three states for trying to regulate prediction markets The federal government wants sole authority over prediction markets. Ian Carlos Campbell Contributing Reporter Thu, April 2, 2026 at 7:01 PM UTC Add Engadget on Google Thu, April 2, 2026 at 7:01 PM UTC Bill Clark via Getty Images The [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[226,63],"class_list":["post-1862526","post","type-post","status-publish","format-standard","hentry","category-politics","tag-crawlmanager","tag-engadget-com"],"_links":{"self":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/posts\/1862526","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1862526"}],"version-history":[{"count":0,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/posts\/1862526\/revisions"}],"wp:attachment":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1862526"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1862526"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1862526"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}