Federal agencies argue Utah's prosecution of Kalshi is preempted by the CFTC's exclusive authority over event contracts, escalating a state-federal clash over prediction markets.
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the CFTC fight
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The injunction halted Illinois licensing and tax rules for CFTC-regulated event contracts, setting up an appellate test of state power over prediction markets.
Judges questioned whether sports event contracts qualify as swaps, leaving state gambling enforcement active while the case proceeds.
Utah's criminal and civil actions against Kalshi and its co-founders mark the most aggressive state challenge to prediction markets to date.
Operators pulled or shuttered Utah offerings following criminal charges against Kalshi, showing how state prosecutions can reshape market access.
The suit challenges the CFTC's clearance of leveraged single-stock derivatives, a decision that also opened a path for Kalshi.
The approval opens a new CFTC-regulated product category for single-stock leveraged contracts and drew a swift industry legal challenge.
The action adds New York to the list of states seeking to shut down unlicensed prediction market operators.
The approvals let Sporttrade launch CFTC-regulated event contracts, adding a licensed venue to the prediction market landscape.
The lawsuit disputes Kalshi's framing that its event contracts are not house-banked gambling, a central point in state enforcement fights.
The deal makes the 76ers the first NBA team to partner with a prediction market, signaling sports industry normalization despite state pushback.
Polymarket is winding down sports event contracts in Michigan, another state-level retreat by a prediction market operator.
State lawmakers are targeting bet types and player incentives seen as driving problem gambling and high-volume wagering.
The cleared products let Kalshi list leveraged contracts tied to individual equities under CFTC oversight.
Ohio is moving toward legislation to define how prediction markets operate within the state, following similar debates elsewhere.
Commentators expect federal and state lawmakers to revisit prediction market rules once the midterm election cycle concludes.
An active NFL player's equity ties to a prediction market ran into league betting restrictions.
The exchange operator is exploring CFTC-regulated contracts tied to inflation data, expanding prediction markets into economic indicators.
The new venue opts for non-sports event contracts, avoiding the state gambling fights that have ensnared rivals.
The Caribbean jurisdiction is positioning itself as an offshore licensing home for prediction market operators.
A ballot measure on legalizing sports betting in Nebraska is too close to call heading into election day.
The settlement is the latest in a string of CFTC enforcement actions tied to insider trading in event and derivatives markets.
State regulators are weighing how to handle wagering on college sports amid conflicting guidance.
The state expanded its wagering menu to include fixed-odds horse racing, a format distinct from pari-mutuel pools.
Weekly data showed continued growth in New York's mobile sports betting market.