CFTC challenges nine states over prediction market oversight
By SectorWire desk ·
Summary
The CFTC has brought legal action against New York and eight other states over prediction market oversight. The Trump administration argues that the CFTC has exclusive jurisdiction, while a coalition of 44 states seeks state regulatory authority. New York sued Kalshi in July, alleging illegal gambling operations and avoidance of its 51% sports betting tax.
Why it matters
Operators face competing federal and state jurisdiction claims, alongside New York’s allegations against Kalshi over gambling and tax avoidance.