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CFTC sues New Mexico to block state gambling laws for prediction markets

Regulation

The CFTC sued New Mexico on Friday, seeking to stop the state from applying its gambling laws to CFTC-registered contract markets. The filing followed a 4 June lawsuit by New Mexico’s attorney general against Kalshi, which accused the company of offering online sports betting unlawfully; the CFTC argues federal law gives it exclusive jurisdiction over event contracts.

The case could affect whether state gambling laws apply to federally regulated prediction markets.

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Regulation

Utah sues Kalshi to block prediction markets and recover up to $61.2m

Utah has sued Kalshi in state court, seeking injunctions to block its event contracts in the state and restitution of alleged illegal gambling proceeds. The complaint estimates Kalshi collected $30.6m to $61.2m in fees from 32,940 Utah accounts. The suit follows an August federal ruling that the Commodity Exchange Act does not preempt Utah's gambling laws.

Utah has sued Kalshi in state court, seeking preliminary and permanent injunctions to block the prediction market operator's sports, elections, politics, culture and mentions-based contracts in the state, and restitution, damages and disgorgement of profits. The complaint was filed by Utah Attorney General Derek Brown against Kalshi and two Susquehanna market maker firms. The state wants the injunctions enforced through a third-party geolocation provider.

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