The CFTC filed a federal lawsuit against Wisconsin after the state classified prediction markets as illegal gambling and took enforcement action against platforms, the report said. The commission is seeking declaratory and injunctive relief to prevent the state from regulating the markets.
The case could affect whether prediction-market platforms face state gambling regulation in Wisconsin.
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The District Court for Arizona issued a preliminary injunction on 5 May 2026 barring the state from taking criminal or civil action against event contracts traded on CFTC-regulated designated contract markets. The ruling followed Arizona’s prosecution of Kalshi for operating without a state licence and the CFTC and Department of Justice’s challenge to the state’s enforcement.
A court in Arizona granted a federal regulator’s request for a temporary restraining order to block the state’s pursuit of criminal charges against Kalshi, according to a report published on 13 April 2026. The available text says the CFTC supported the request but does not identify the court or provide further terms.
ProphetX argued that the CFTC can pre-empt state action against prediction markets by exempting sports event contracts from Section 4(c) of the CEA, according to the report. The company said prediction markets serve a public-interest function.
Ohio Governor Mike DeWine said the state will pursue enforcement against more prediction market operators offering sports-related contracts, reported by The Statehouse News Bureau. The Ohio Casino Control Commission has already issued cease-and-desist notices to Kalshi, Polymarket and Robinhood. Two bills would restrict election betting and treat sporting event contracts as regulated, taxable sports gambling.
Governor Mike DeWine has signaled that Ohio intends to take enforcement action against additional prediction market operators that list sports-related contracts, describing those products as violations of state gambling law. According to The Statehouse News Bureau, the governor made clear that the state's response will involve enforcement rather than warnings alone. Cease-and-desist notices have already gone out from the Ohio Casino Control Commission to multiple firms, among them Kalshi, Polymarket and Robinhood.
A regulation roundup reported that states including Colorado, Minnesota and Wisconsin were continuing moves against prediction markets. It also reported that Oklahoma’s legislature overrode its governor, without specifying the measure or its effect.