Federal court blocks Arizona gambling laws for prediction markets
A US district court barred Arizona from applying its gambling statutes to prediction markets, granting a preliminary injunction on 5 May in a case brought by the CFTC and Department of Justice. The judge ruled that event contracts on federally regulated designated contract markets fall under federal law; Arizona’s attorney general has signalled a possible appeal.
The injunction allows prediction-market operators to continue offering event contracts in Arizona while the case proceeds.