US sues Arizona, Connecticut and Illinois over prediction market oversight
The US government has sued Arizona, Connecticut and Illinois, seeking to block state efforts to regulate prediction markets. It argues that the Commodity Futures Trading Commission has exclusive authority over the markets; the states say their actions concern consumer protection, while CFTC chairman Michael Selig said the agency would defend its jurisdiction. The cases follow state cease-and-desist orders, and Arizona filed criminal charges against Kalshi in March.
The lawsuits put the division of federal and state authority over prediction markets before the courts.