New York Attorney General Letitia James issued a consumer alert on 2 February warning residents about prediction markets ahead of the Super Bowl. James said unlicensed sports wagering could violate state gambling laws and expose operators to civil and criminal liability.
The warning raises legal and consumer-protection risks for prediction-market operators serving New York residents.
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Nine Democratic members of the US House of Representatives sent a formal letter to the Federal Trade Commission concerning its investigation into prediction market platforms, reportedly this week. The available report text gives no further details about the letter or the investigation.
New York Attorney General Letitia James warned consumers about prediction markets ahead of Super Bowl LX, saying the platforms lack protections available through regulated betting and fall outside the New York State Gaming Commission’s oversight. She cautioned operators that advertising or promoting what appears to be sports betting could breach state gaming laws and lead to civil or criminal prosecution.
President Donald Trump said the Commodity Futures Trading Commission should have sole authority over prediction markets and that state regulators should not interfere, according to reports. The coverage also says Minnesota enacted a law intended to block prediction-market operators, while federal authorities responded with legal action asserting federal authority. Kalshi and Polymarket maintain that they operate as federally regulated exchanges, not gambling businesses.
Donald Trump voiced support for prediction markets in a Truth Social post, criticising Democratic officials who have acted against the sector. The CFTC has filed lawsuits against Illinois, Minnesota, Arizona and Connecticut, while state-level restrictions and congressional proposals remain part of the debate, according to the report.
The Commodity Futures Trading Commission filed a lawsuit in New York seeking to stop the state from taking enforcement action against CFTC-registered prediction market companies. The agency said New York has used cease-and-desist letters and civil suits against those entities. The case follows lawsuits brought by New York Attorney General Letitia James against Coinbase and Gemini over alleged illegal gambling services.