Tech · Fortune Technology
Feds sue 3 states for trying to bring Kalshi and Polymarket under more control
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The federal government on Thursday sued Connecticut, Arizona and Illinois, challenging their efforts to regulate prediction market operators such as Kalshi and Polymarket.
Key facts
- The CFTC will continue to safeguard its exclusive regulatory authority over these markets and defend market participants against overzealous state regulators,” CFTC Chairman Michael S
- The Commodity Futures Trading Commission contends in court filings that it, not the states, regulates these companies
- Connecticut Attorney General William Tong on Thursday accused the Trump administration of “recycling industry arguments” that have been rejected in district courts across the country
- The federal government on Thursday sued Connecticut, Arizona and Illinois, challenging their efforts to regulate prediction market operators such as Kalshi and Polymarket
Summary
All three states have sent cease and desist orders to such companies accusing them of engaging in illegal online gambling under state law. The Commodity Futures Trading Commission contends in court filings that it, not the states, regulates these companies. “The CFTC will continue to safeguard its exclusive regulatory authority over these markets and defend market participants against overzealous state regulators,” CFTC Chairman Michael S. Last month, the Trump administration threw its support behind the operators Kalshi and Polymarket in a critical legal battle that could have implications for how sports betting is regulated.